Almost 40% of India's online travel is accounted to IRCTC, India's major Govt owned eCommerce portal. To exploit the site, soon a consultant will be hired to up its valuation.
MUMBAI: The Indian Railway Catering & Tourism Corporation (IRCTC), the country’s biggest eCommerce portal, owned by the Government, is aiming for high growth path, just like the leading e-tailer Flipkart. A consultant will be hired to increase the valuation of IRCTC.
"We are trying to exploit the site. Our growth will come from there. We have been asked by the government to grow like Flipkart," chairman and managing director AK Manocha told ET.
"The government wants to monetise railways assets. For now, it is just evaluating and seeing how much it can fetch if it goes for an initial public offering (IPO). It wants a ballpark figure," a source said.
The Indian Railways unit expects to accumulate its highest net profit on the basis of e-ticketing and new trains that were introduced last year. Profit is expected to increase 35% to Rs 115 crore in the next financial year, driven by new services and advertising revenue, said Manocha. The target set by IRCTC is Rs 10,000 crore of revenue by 2025.
While major eCommerce companies continue to face losses, Flipkart even after six years of operation is still not profitable. It is valued around $11 billion. Some other portals including MakeMyTrip, Yatra and Cleartrip are also on the danger line.
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