The Economic Times
BENGALURU: Investment firms Helion Venture Partners and IDG Ventures India have sold stakes in Flipkart in deals that value India’s largest online retailer at $12.5 billion (Rs 77,000 crore), according to two people involved in the deals.
Helion, which got a stake in the Bengaluru-based company by virtue of its investment in online electronics retailer LetsBuy that was acquired by Flipkart in 2012, has sold its entire stake of 0.2 per cent, estimated to be worth Rs 156 crore. IDG Ventures, which entered Flipkart through fashion portal Myntra that was bought last year, has shed a portion of its holding of 1 per cent by selling stake worth nearly Rs 940 crore last month. IDG still holds about 0.9 per cent stake in Flipkart.
ET could not independently ascertain the buyers in both these transactions. Last month, ET was the first to report that Flipkart was seeking a valuation of $15 billion as it prepares the ground for a fresh round of fund-raising led by its largest investor Tiger Global.
Helion declined comment on the developments while IDG Ventures and Flipkart did not respond to email queries.
Industry experts are of the view that the stake sales are happening at a time funding cycles are expected to taper off in India’s redhot ecommerce sector, where the top three firms mopped up nearly Rs 31,000 crore ($5 billion) of funding in 2014.
Flipkart, founded by former Amazon employees Sachin Bansal and Binny Bansal, saw its valuation leapfrog from Rs 16,120 crore ($2.6 billion) in May 2014 to about Rs 68,000 crore ($11 billion) by December when it raised $700 million led by Steadview Capital. It is now aiming to raise Rs 10,500 crore ($1.7 billion) through this year, with Tiger Global expected to lead the investment.
The company is aiming to sell goods worth $8 billion in 2014-15 and competes against Amazon and Snapdeal.
“Valuations aren’t going in those crazy multiples anymore,” said one person directly involved in the stake sale.
Nikhil Govindaraj is Vice President of Product at Moxie where he is responsible for all aspects of product management, product design and strategy. Nikhil has more than 15 years of experience in CRM, enterprise collaboration and multi-channel contact centres.
Nikhil shares his tips on how businesses can harness big data to enhance the customer experience.
For many companies, “big data” has become a must-have strategic tool to win more business and outsmart the competition. In particular, consumer retail businesses rely on the data they have collected about their customers to deliver everything from personalised advertising campaigns to new products that precisely target each individual’s interests.
Unfortunately, many companies make the mistake of using big data to solely focus on the “buy” side of the business, but the most successful retailers understand that the overall customer experience is just as important as the sale itself. These companies leverage big data throughout the customer journey and during every engagement in an effort to increase customer satisfaction, loyalty and, yes, purchases.
These are five key ways your company can harness big data to enhance the customer journey.
1. Deliver the In-Store “Human Touch” Online with Digital Cues
Physical stores have one great advantage: Sales staff and customers engage face-to-face. This gives sales associates the opportunity to “read” customers, using visual data cues to make judgments about how best to approach a customer, such as how long someone has been comparing two products. Armed with this information, sales associates tailor their treatment to customers’ needs to best assist them with purchases. And it works—conversion rates for stores range from 10 percent for apparel to 100 percent for groceries, outpacing Internet conversion rates of just 1-3 percent (Deloitte).
When it comes to online stores, companies have focused on driving prospects to their websites, but then letting them wander around the site without any assistance or guidance. It’s one of the main reasons conversion rates have remained abysmally low. Online brands need to emulate the in-store experience by using digital cues to identify when a customer would benefit from attention to complete a transaction. For example, did the customer get an error message when processing a payment? If so, immediately offer a live chat session with an agent to help the customer solve the problem and complete the purchase.
Read More Tips Here…