Flipkart Valuation

Team Members:
Shashank Prasad (CH12B1021)
Shyam Kumar (ME12B1035)
Kiran Kumar Kandula
(EE12B1011)
Proposed Deal

Proposed Equity = 2%
Post-money Valuation = $20 billion
Investment Amount = $400 million
Pre-money Valuation = $19.6 billion

Should Ratan Tata invest or not ??

 Future Potential of
Ecommerce in India
In June 2015, there were about 354
million internet users (in India) and it is
expected to reach 462 million mark by
June 2016.
By 2015 end, Internet mobile users were
306 million (76%) of total internet users.
Presently 1% of retail shopping online.
Statistics says, by the end of 2020 this
figure will reach out to 4%.
Mergers in brick and mortar retail
sectors to fight back e-commerce
players.
Vertical Integration
Integration of new technologies like
Augmented Reality
 3 CHARTS TO SHOW
FUTURE GROWTH
PROSPECTS OF
1) Comparison FLIPKART
with contemporaries:
 3 charts to show future
growth prospects of Flipkart
2) Huge scope to increase number of
active buyers
 3 charts to show future
growth prospects of Flipkart
3) Growth of online shopping trend in India
EV/GMV Ratio Comparison of some
competitors
Is Tatas ROI really worth
it?
Current GMV = $8.5 billion
Market share in 2015 = 45%
Expected nos. in 2020 :
Market share = 35 %
Market size = $119 billion
GMV = $119*0.35 billion = 41.65
EV/GMV ratio = 1.5
Valuation = 1.5*41.65= $62.47 billion

Value of Investment i.e. 2% equity = $1.2494 billion

ROI = %25.58 , CAGR over 5 years.