Notes on Indian equities, sectors and economy

  • Enter your email address to subscribe to this blog and receive notifications of new posts by email.

    Join 92 other followers

  • Top Posts & Pages

The magic of e-commerce – I

Posted by fairval on September 25, 2014

While Flipkart story is well known, there are possibly dozens of examples in e-commerce where young start-ups have raised astounding amounts of money.

Our research affiliate India Business Reports was checking out Urban Ladder, which is a online furniture retailer, or a niche vertical player (Flipkart is a horizontal, present in several categories). Check some numbers about this:

  • Incorporated in early 2012
  • FY13 was the first financial year, where sales was Rs 2 crore
  • Promoters in early ‘30s. IIT-IIM types, but experience in this domain – Zero.
  • Has already raised 3 rounds of funding aggregative Rs 145 crore.

See how valuations have progressed (pre-money). Kindly note these numbers are IBR estimates, could be somewhat off the mark.

Valuations in successive rounds

Valuations in successive rounds

We don’t know FY14 revenue. But it seems aims to cross Rs 100 crore revenue in FY15. While the ramp up is commendable, it is backed by considerable money. And the company will probably be profitable in FY18.

Which other business is there where you can raise so much money so fast, and yet plan to make EBITDA losses for a few years more. Between Oct’13 and Jun’14 is 8 months, and the pre-money valuation seems to have increased 5.6x!


One Response to “The magic of e-commerce – I”

  1. Greater fool theory in progress…

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: