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Experts have pinned India as one of the fastest growing e-commerce markets. With the ever-increasing penetration of smartphones, the e-commerce world, according to a KPMG report, is set to touch $100 billion by 2020. Keeping this vision in mind many investment companies have parked billions at sky-high valuations. But the real question is, are these valuations justified? Let's take an example.
"I want to have my own start-up," is the chant of every starry eyed student and every frustrated employee. The recent valuation of nine-year-old Flipkart at $15 billion makes it more valuable than the 50-year-old IOC (Indian Oil Corporation) Ltd, and several other companies, putting the online retailer in the top 20 firms vying for market capitalisation. Such hyped valuations of tech start-ups lead every aspiring entrepreneur to venture into the tech space. But here is the million dollar question: Are these valuations justified?