[plinkplonk]

Here is how I think about this. Amazon's market cap is about 96 billion. Having a valuation of 1 billion would imply that FlipKart is, as of today, worth about 1/100 of the whole of Amazon (in every country, across all products including the Kindle and the AWS product line). I don't see it as of today(but am willing to be educated).

Due Disclosure: I have used FlipKart and I do like it. But that is because the alternatives in India are non existent or horrendous. With Amazon coming to India next year, that will change.

And it is not all doom and gloom for FlipKart. I suspect being overvalued is good when you are trading equity for money. All they need to do is to find a strategy to counter Amazon to survive and thrive. They don't have to beat Amazon on every measure to have a succesful business. They'll have to pull off an Intuit vs Microsoft style defence. I hope they do. From all I know, they are bright people. They've crushed their local competition (Infibeam say[1]) with superior execution.

Competition is awesome. Good for us customers. The local bubble is (imo) just a reflection of the global bubble.

[1] Trivia: I was having dinner the other day with an Infibeam ex employee and asked him why FlipKart won so convincingly over his ex employer and he said "FlipKart is run by engineers. Infibeam is run by managers. Why are you surprised?".

[rushabh]

How can you say flipkart crushes infibeam? If Google trends is any indicator, they are running neck in neck.

http://trends.google.com/websites?q=Infibeam.com%2C+flipkart...