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Flipkart focuses on growing

Flipkart is now looking to focus its attention towards the growth of the platform by employing the fund saved from this cost-cutting back into the business, mention sources privy to the development. With regard to the same, the company plans to generate surplus cash through operational efficiencies and revenue from its ad and logistic units.

Flipkart is looking forward to save $150-250 million by slashing its burn rate. The leading e-commerce website wants to double its growth rate by December 2017. Flipkart's burn rate was at its highest two years ago when spending on customer acquisition peaked. Its current burn rate is said to be $40-50 million per month, according to industry estimates.

Flipkart now plans to infuse a bare minimum of fresh capital into its efforts of scalability until a new investor comes on board to support its expansion into new avenues. This step towards cutting costs and beefing up it’s logistic and marketing division with bare minimum investments will enable Flipkart to present itself as an attractive package to new investors. In other news Flipkart has decided not to take up 40% of the office space in its new campus in Embassy tech village in Bengaluru even as the country’s biggest ecommerce company looks to cut costs and reduce losses, said multiple people aware of the matter. 

Flipkart, which is undergoing a restructuring drive, will now take 1.2 million sq ft office space in the new campus as opposed to the earlier plan of occupying 2 million sq ft in two phases. 

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