Flipkart is now hungry for profits and is going for the kill, starting with capping increments

Flipkart now wants to shake up its e-commerce business to make profits and reduce the burn rate. As the festival season is coming ahead in September, where the discounts warfare will emerge, Flipkart will also coming up with big developments.

For starters, Flipkart will cap the increment at 10%, except those teams that are driven by variable targets.

Flipkart's Binny Bansal, reportedly, has also set clear sales and customer experience targets that are to be met by September 2016.
"The next six months will see new developments, including some categories being shut down," a source told ET.

Flipkart is not leaving anything unturned as it want only profits now. Earlier, the e-commerce player was harping on the expansion model.
ET reported that at present, Flipkart has an estimated burn rate of about $50 million a month now, down from about $ 80 million in the last quarter of 2015.

"The idea is to bring down the burn rate by another $10 million a month," a source told ET, adding that by September the company should be at a $40 million monthly burn rate.

As a part of this aggressive approach, all category heads will focus on getting on board best quality products at lowest cost with Binny Bansal spending majority of his time with the commerce unit since becoming the CEO.

Apart from its profit-making categories such as fashion, electronics and large appliances, Flipkart now wants to push furniture and automobiles too.

After Binny Bansal replaced Sachin Bansal as CEO, he has been overhauling the system at the management level.

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