flipkart success story by financeupmedia
introduction of Flipkart
Flipkart is an e-commerce company based in India, founded in 2007 by Sachin Bansal and Binny Bansal. It started as an online bookstore, but soon expanded to sell other products, including electronics, fashion, and household goods. Today, Flipkart is one of the largest e-commerce companies in India, competing with the likes of Amazon India and Snapdeal. It offers a wide range of products and services, including mobile phones, laptops, fashion, appliances, home and furniture, grocery, and more. In 2018, Walmart acquired a majority stake in Flipkart, valuing the company at $21 billion. The acquisition was one of the largest in the history of the e-commerce industry and was seen as a strategic move by Walmart to expand its presence in the Indian market. Flipkart has a strong presence in India, with millions of registered users and a vast network of sellers and suppliers. It has also invested heavily in technology and logistics, enabling it to provide fast and reliable delivery to customers across the country.
Flipkart – Company Highlights
|Founders||Sachin Bansal, Binny Bansal|
|Total Funding||$12.6+ billion (January 2022)|
Flipkart is one of the largest e-commerce companies in India, founded in 2007 by Sachin Bansal and Binny Bansal. It started as an online bookstore but has now expanded to sell a wide range of products, including electronics, fashion, household goods, groceries, and more. In 2018, Walmart acquired a majority stake in Flipkart, valuing the company at $21 billion. This acquisition was seen as a strategic move by Walmart to expand its presence in the Indian market. Flipkart operates through its website and mobile app, which are user-friendly and provide a seamless shopping experience. It has a vast network of sellers and suppliers, enabling it to offer a wide range of products at competitive prices.
The company has invested heavily in technology and logistics, which has helped it to provide fast and reliable delivery to customers across India. Flipkart also offers various payment options, including cash on delivery, credit/debit cards, and net banking, making it convenient for customers to shop online. In addition to its e-commerce operations, Flipkart has also launched several initiatives, such as Flipkart Plus loyalty program, Flipkart Wholesale for B2B sales, and Flipkart Video for original video content.
Overall, Flipkart has played a significant role in the growth of the e-commerce industry in India and is continuing to innovate and expand its offerings.
Flipkart – Logo & tagline
Ab Har Wish Hogi Poori
Abhi Nahi Toh kabhi Nahi
If it’s trendy, it’s on Flipkart
Be trendy, Always
Itne mein, ITNAAA milega
The Online Mega Store
Shoping ka naya Address
Ab Mehengaai Giregi
Flipkart – founders
Binny Bansal is an Indian entrepreneur and the co-founder of Flipkart, one of the largest e-commerce companies in India. Along with Sachin Bansal (not related), he started Flipkart in 2007 as an online bookstore, which later expanded to sell a wide range of products, including electronics, fashion, household goods, groceries, and more.
Binny Bansal served as the CEO of Flipkart from January 2016 to November 2018, during which he oversaw the company’s rapid growth and several strategic initiatives. In November 2018, he resigned as the CEO of Flipkart following allegations of personal misconduct, which he denied.
After leaving Flipkart, Binny Bansal has been involved in several philanthropic initiatives, including setting up the Bansal Foundation to support non-profit organizations in India. He has also invested in several start-ups and serves as a board member and advisor to several companies.
Binny Bansal has been recognized for his contributions to the Indian e-commerce industry, and he has received several awards and accolades, including Forbes India’s “Person of the Year” in 2016.
Sachin Bansal is an Indian entrepreneur and the co-founder of Flipkart, one of the largest e-commerce companies in India. Along with Binny Bansal (not related), he started Flipkart in 2007 as an online bookstore, which later expanded to sell a wide range of products, including electronics, fashion, household goods, groceries, and more.
Sachin Bansal served as the CEO of Flipkart from its inception until January 2016, during which he oversaw the company’s rapid growth and several strategic initiatives. After stepping down as the CEO, he continued to serve on the company’s board until he left the company in May 2018, following Walmart’s acquisition of a majority stake in Flipkart.
After leaving Flipkart, Sachin Bansal has been involved in several start-ups, including investing in and launching new ventures. In 2019, he co-founded BAC Acquisitions, a company focused on making investments in technology and financial services. He has also been actively involved in philanthropic initiatives, including setting up the Bansal Foundation to support non-profit organizations in India.
Sachin Bansal has been recognized for his contributions to the Indian e-commerce industry and has received several awards and accolades, including Forbes India’s “Person of the Year” in 2016.
Flipkart – History and How it Started?
Flipkart was founded in 2007 by two friends, Sachin Bansal and Binny Bansal, who met while studying at the Indian Institute of Technology, Delhi. They started the company as an online bookstore, with the aim of making it easier for people in India to buy books online.
The initial years of Flipkart were challenging, as the e-commerce industry was still in its early stages in India. However, the founders persevered and started to expand their offerings beyond books, selling products such as mobile phones, laptops, and other electronics.
In 2010, Flipkart launched its own payment gateway, PayZippy, which allowed customers to make secure online payments. The following year, the company launched its mobile app, making it even easier for customers to shop online.
Flipkart’s growth accelerated in 2012 when it raised a $150 million funding round led by Naspers and Tiger Global. This allowed the company to invest in technology and expand its product offerings, including launching its own line of tablets.
Over the next few years, Flipkart continued to grow rapidly, adding more products and services, including groceries and fashion. The company also made several strategic acquisitions, such as the fashion e-commerce platform Myntra and the online payments company PhonePe.
In 2018, Walmart acquired a majority stake in Flipkart, valuing the company at $21 billion, which was one of the largest acquisitions in the history of the e-commerce industry. Today, Flipkart is one of the largest e-commerce companies in India, competing with the likes of Amazon India and Snapdeal, and it continues to innovate and expand its offerings.
Flipkart– Mission and Vision
Flipkart’s mission is to provide affordable and accessible e-commerce to customers in India. The company aims to leverage technology and innovation to create a seamless and personalized shopping experience for its customers, while also providing sellers with a platform to reach a wider audience and grow their business.
Flipkart’s vision is to be India’s most customer-centric company, providing the best selection of products and services at the most competitive prices. The company strives to make online shopping accessible to everyone in India, regardless of their location or socioeconomic status.
Flipkart’s core values include customer focus, ownership, bias for action, high standards, and innovation. These values guide the company’s decision-making and actions, ensuring that it is always focused on delivering the best possible experience for its customers and stakeholders.
In addition to its e-commerce operations, Flipkart is also committed to social responsibility and sustainability. The company has launched several initiatives to promote environmental sustainability, including using renewable energy sources and reducing waste. It also runs various programs to support local communities, such as providing employment opportunities and supporting education initiatives.
Flipkart – Challenges
Flipkart has faced several challenges throughout its journey, as it has grown and evolved in the dynamic and competitive Indian e-commerce market. Some of the key challenges that Flipkart has faced include:
|Competition: Flipkart operates in a highly competitive market, with global players such as Amazon and local rivals such as Snapdeal and Reliance JioMart. The intense competition has put pressure on the company to constantly innovate and differentiate itself to stay ahead.|
|Regulatory environment: The Indian e-commerce sector is heavily regulated, with restrictions on foreign ownership and complex tax laws. These regulations have created compliance challenges for Flipkart and other e-commerce companies operating in India.|
|Logistics and infrastructure: India’s logistics and infrastructure are still developing, which has created challenges for Flipkart in terms of timely and reliable delivery of products. The company has invested heavily in building its logistics and supply chain capabilities to overcome these challenges.|
|Fraud and counterfeit products: Like any e-commerce platform, Flipkart has also had to deal with fraudulent activities and counterfeit products being sold on its platform. The company has implemented various measures to address these issues, such as seller verification and quality control checks.|
|Changing consumer behavior: The pandemic has accelerated the shift to online shopping, and consumer behavior is rapidly evolving. Flipkart needs to adapt to these changing consumer trends and preferences to remain relevant and competitive.|
Overall, Flipkart has navigated these challenges successfully by investing in technology, innovation, and partnerships to enhance its offerings and provide a better experience for its customers and sellers. The company continues to evolve and adapt to the changing market dynamics to maintain its position as a leading e-commerce player in India.
Flipkart – business model
Flipkart operates on a marketplace model, which means that it acts as an intermediary between buyers and sellers. The company provides an online platform where sellers can list their products, and buyers can browse and purchase these products.
Flipkart generates revenue by charging a commission on the products sold through its platform. This commission varies depending on the product category and the seller’s sales volume. Flipkart also charges fees for certain value-added services, such as advertising and logistics.
The company has invested heavily in building its logistics and supply chain capabilities to ensure fast and reliable delivery of products. Flipkart has also launched its own payment gateway, PhonePe, which allows customers to make secure and easy payments online.
To attract and retain customers, Flipkart offers a wide range of products at competitive prices, along with various promotions and discounts. The company also provides a seamless and personalized shopping experience through its website and mobile app, which includes features such as personalized recommendations, easy returns, and 24/7 customer support.
In addition to its core e-commerce business, Flipkart has also diversified into other areas, such as digital payments, fintech, and grocery delivery. This has allowed the company to tap into new revenue streams and expand its customer base.
Flipkart – Revenue Model
Flipkart’s revenue model is primarily based on commissions and fees charged on products sold through its platform. The company earns a commission on each sale made by sellers through its platform, which varies depending on the product category and the seller’s sales volume. This commission typically ranges from 5% to 20% of the product’s selling price.
In addition to commissions, Flipkart also charges fees for value-added services such as advertising, warehousing, and logistics. These fees are charged based on the volume and type of service used by the sellers.
Flipkart has also diversified its revenue streams by launching its own payment gateway, PhonePe, which allows customers to make secure online payments. The company earns revenue through transaction fees charged on payments made through PhonePe.
Flipkart has also expanded into other areas such as fintech and grocery delivery, which offer additional revenue streams. The company has launched various financial products such as credit cards, personal loans, and insurance, which generate revenue through interest and fees. Its grocery delivery service, Flipkart Supermart, generates revenue through the sale of groceries and delivery fees.
Overall, Flipkart’s revenue model is focused on providing a comprehensive e-commerce platform that supports sellers and enables them to grow their business, while also providing a seamless and convenient shopping experience for customers. The company continues to innovate and diversify its revenue streams, ensuring long-term growth and sustainability.
Flipkart – Marketing
Flipkart has implemented various marketing strategies to attract and retain customers, and to differentiate itself from its competitors. Some of the key marketing initiatives undertaken by Flipkart are:
|Advertising: Flipkart invests heavily in advertising to create brand awareness and promote its products and services. The company uses various channels such as television, social media, print, and outdoor advertising to reach its target audience.|
|Sales and Promotions: Flipkart runs various sales and promotions throughout the year, such as Big Billion Days and Flipkart Plus, to drive customer engagement and increase sales. These events offer discounts, cashback, and other incentives to customers, and have become a key part of Flipkart’s marketing strategy.|
|Personalization: Flipkart uses data and analytics to personalize the shopping experience for its customers. The company provides personalized recommendations and offers based on customers’ browsing and purchase history, making the shopping experience more relevant and engaging.|
|Influencer Marketing: Flipkart has collaborated with several celebrities and influencers to promote its products and services. This has helped the company reach a wider audience and increase brand visibility.|
|Partnerships: Flipkart has entered into strategic partnerships with various brands and service providers to offer customers a comprehensive shopping experience. For example, the company has partnered with financial institutions to offer credit and insurance products, and with logistics companies to improve delivery times and reliability.|
Overall, Flipkart’s marketing strategy is focused on providing a seamless and personalized shopping experience for its customers, while also differentiating itself from its competitors through unique offerings and collaborations. The company continues to innovate and adapt its marketing approach to stay relevant and competitive in the Indian e-commerce market.
Flipkart – Competitors
Flipkart is a major player in India’s e-commerce industry and faces stiff competition from several players, including Amazon India, Snapdeal, Myntra, Paytm, Etsy, eBay, and Alibaba. As of March 2017, Flipkart held a dominant 39.5% market share in India’s e-commerce industry, particularly in the sale of apparel, which was bolstered by the company’s acquisitions of Myntra and Jabong.com. In the sale of electronics and mobile phones, Flipkart was described as being “neck and neck” with Amazon India.
Flipkart – Future Plans
Despite the absence of its founders Sachin and Binny Bansal, Flipkart remains a formidable player in the Indian startup ecosystem. The brand’s willingness to take risks has been one of its key advantages, enabling it to evolve from a bookstore to a diversified e-commerce platform offering a wide range of products. Even with changes in shareholders and competition, Flipkart has continued to expand its reach and offerings.
Walmart’s significant investment in Flipkart has enhanced the latter’s service and market presence, and is expected to fuel further innovations. Flipkart is poised to introduce advancements in e-commerce, broaden its range of products, improve product quality, and enhance integration with small businesses. With the recent fundraising and Softbank’s addition to its investors’ list, Flipkart is gearing up for its planned public listing in 2022.
1. Flipkart is from which country
2. Is Flipkart owned by Amazon?
Now, it contemplated an acquisition. In May 2018, after more than half a year of negotiations, Walmart agreed to pay $16 billion for a 77% stake in Flipkart. It remains Walmart’s biggest-ever deal.
3. What kind of startup is Flipkart?
Founded by Sachin Bansal and Binny Bansal in 2007, Flipkart is an e-commerce company based in Bengaluru, India.
4. Is Flipkart a startup?
Launched back on October 7 with a mere investment of 4 lakh ($around & 6000), Flipkart is among the initial eCommerce startups in India. With the fast-forward decades, this small startup has become a leading eCommerce giant in India.
5. What is the salary of CEO of Flipkart?
Flipkart CEO/MD/Director salary in India ranges between ₹ 380.0 Lakhs to ₹ 420.0 Lakhs. This is an estimate based on latest salaries received from employees of Flipkart.