India 'great destination' for tech IPOs, markets welcoming: Binny Bansal

Flipkart co-founder pioneer acknowledges quick commerce model working well despite his scepticism

Flipkart co-founder Binny Bansal, whose e-commerce startup was acquired by Walmart for $16 billion in 2018, has a piece of advice for entrepreneurs: Incorporate in India to build a “global company”.

Binny Bansal said this in Bengaluru as several Indian startups domiciled in Singapore and the United States consider shifting their base, or reverse-flipping, to India. These include companies in fintech, edtech, e-commerce, stockbroking, and health care.

“My advice to founders today building from India, even if they're building a global company is to incorporate here,” he said at a media round table of South Park Commons (SPC), the Silicon Valley-based early-stage venture fund. “India is a great destination for tech IPOs (initial public offering). The capital markets are welcoming.”

Binny Bansal early this year exited the board of Flipkart, which he founded along with Sachin Bansal 16 years ago (the two men are not related). Sachin Bansal left the board in 2018 and founded Navi, a financial services firm. When US retail giant Walmart invested $16 billion for a majority stake in Flipkart, the Indian firm was valued at less than $21 billion. This made Sachin and Binny billionaires and provided blockbuster exits to investors.

Now, the demand for quick commerce is increasing, according to industry experts. The 15- to 20-minute delivery provided by quick-commerce players like Blinkit, Zepto, and Instamart is taking sales away from e-commerce firms like Flipkart and Amazon. Binny Bansal acknowledged that the quick commerce model is working despite his scepticism.

“I give a lot of credit to the people who are making it work. I was also sceptical but I think it seems to be working pretty well,” said Bansal. “There is innovation that is happening against big companies. There is Amazon and Flipkart and all of them are trying to do this. But some people figured out how to do it. This was possible as there is talent, ambition, market need as well as ecosystem. If you look at Zepto, they were able to build a very strong team and execute well.”

When asked if the quick commerce model would succeed in India as it takes a lot of capital and there are issues related to unit economics and profitability, Binny Bansal said that the segment is getting traction from customers.

He has launched a startup called OppDoor to provide end-to-end solutions to e-commerce firms.