Flipkart How its was Started
Flipkart Pvt Ltd. is an Indian electronic commerce company headquartered in Bengaluru, India. Founded by Sachin Bansal and Binny Bansal (no relation) in 2007, the company initially focused on book sales, before expanding into other product categories such as consumer electronics and fashion.
Flipkart has received significant amounts of funding from various partners. It competes primarily with Amazon and the local rival Snapdeal.
In May 2018, Walmart bought a 77% stake in the company for $17 billion USD, making this acquisition the world’s largest in e-commerce.
Back in 2007, when Flipkart was launched, Indian e-commerce industry was taking its beginner steps. The company is registered in Singapore, but their headquarters are in the city of Bangalore, India.
Founders Sachin Bansal and Binny Bansal, who were working for Amazon.com had an idea to start an e-commerce company in India. Both of them are alumni of IIT, Delhi and are native of Chandigarh, India. They left their jobs in Amazon to start their own business. One can easily call that a risky move. In a country where people have various tastes and preferences, an e-commerce start-up will always have enormous challenges. In India, people often prefer to shop in person and buy goods they see and like. Today, thanks to Flipkart, e-commerce has become one of the fastest growing sectors in India.
Flipkart began selling books, to begin with. It soon expanded and began offering a wide variety of goods. Innovating right from the start, Flipkart has been home to few of the striking features of Indian e-commerce.
Flipkart raised funds through venture capital funding. As the company grew in stature, more funding arrived. Flipkart repaid the investors’ faith with terrific performances year after year. In the financial year 2008-09, Flipkart had made sales to the tune of 40 million Indian rupees. This soon increased to 200 million Indian rupees the following year. Their last round of Fundraising had increased their value to $15 billion, however, as of February 2016, according to Morgan Stanley, their estimated value stands at $11 billion.
Back at the time when Flipkart was launched, any e-commerce company faced two major difficulties. One was the problem of online payment gateways. Not many people preferred online payment and the gateways were not easy to set up. Flipkart tackled this problem by introducing cash on delivery and payment by card delivery in addition to others. Flipkart was the first to implement the popular ‘Cash On Delivery’ facility, which every online shopping website in India offers as an option today.
The second problem was the entire supply chain system. Delivering goods on time is one of the most important factors that determine the success of an e-commerce company. Flipkart addressed this issue by launching their own supply chain management system to deliver orders in a timely fashion. Today as it stands, Sachin Bansal is the Chairman of the company and Binny Bansal is the CEO of Flipkart.
Flipkart also acquired few companies like Myntra.com, LetsBuy.com etc., to better their presence in the market. With the entry of Amazon.com in India, the competition between the companies has seen many takeovers. Flipkart’s journey from a small book e-retailer to India’s largest e-commerce platform inspires a generation of start-ups. In a country where stereotypes are common, Flipkart managed to break the norm and change the ecommerce industry in India for ever. Flipkart’s story proves that if you have a great idea, and you are a doer and not a thinker, success is not far off.
Flipkart – Walmart Deal
It’s official. Walmart has wrapped up Flipkart acquisition for $16 billion, a valuation of over $20 billion, which makes it the world’s biggest ecommerce deal. Walmart will own around 77 per cent of the Bengaluru-based company in what is also being seen as the largest buyout for the US firm.
The deal, which will see founder Sachin Bansal exit completely, will now pit US-based giants Walmart and Amazon in the Indian market.
The deal is going to shake things up. The world’s biggest retail deal will impact the whole segment, the competitors and the consumers. Here’s how it pans out.
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