No longer considered a fad but rather a common activity among consumers of all ages, internet shopping through eCommerce websites has become more common.
The term Flipkart should be mentioned right at the beginning whenever we have a conversation about the e-commerce business in India since it is by far the most popular website in that sector.
In 2007, Sachin Bansal and Binny Bansal established Flipkart, which has since become the most successful online marketplace in India.
When it emerged as the leader during the holiday shopping period, Flipkart Group's market share was last recorded by RedSeer at a staggering 62 percent.
This was when it had the largest part of the market. This Indian online retail company has been credited for starting a revolution in the e-commerce sector in India.
The history of Flipkart's meteoric rise to prominence is detailed here, along with more information on the company's founders, subsidiaries, parent organization, slogan, and other aspects.
Everything About Flipkart
Flipkart's corporate headquarters is in Bengaluru, India. Sachin Bansal and Binny Bansal, are both graduates of the Indian Institute of Technology in Delhi and were formerly employed by Amazon. He established Flipkart in October of 2007.
Flipkart belongs to the service sector; eCommerce. Flipkart was funded at INR 400,000 at the beginning, which is equivalent to USD 5,200. Later on, it was able to get money from venture capital companies such as Accel India (which provided it with funding of US$1 million in 2009) and Tiger Global.
Walmart is the corporation that serves as the parent company. Flipkart's Chief Executive Officer is a man named Kalyan Krishnamurthy.
This has resulted in the company being valued at $37.6 billion, which is an increase of more than 50 percent in only one year. Flipkart has generated an income of 436.15 billion. You can check out the official website
Flipkart Founder and Team
Flipkart was established with the help of Sachin Bansal as a co-founder.Following his graduation from IIT Delhi with a Bachelor of Science degree in Computer Science,
Sachin began his career as a Senior Software Engineer at Amazon following a short employment period at Techspan. After that, he resigned from his position at Amazon and went on to co-found Flipkart.
Binny, an alumnus of IIT Delhi much like Sachin, received his Bachelor of Science degree in Computer Science and Engineering before helping to create Flipkart. Sachin also attended IIT Delhi.
Flipkart was led by Binny Bansal, who served as both the COO and CEO. Binny Bansal took over as CEO of Flipkart in 2016,
while Sachin Bansal moved into the role of executive chairman of the firm at that time On the other hand, Binny resigned from his position at Flipkart in 2018 owing to charges of personal misconduct made against Flipkart.
Flipkart startup story
Sachin Bansal and Binny Bansal were cultivating their own big idea while they were working out of a two-bedroom apartment in the posh neighborhood of Koramangala, which is located in the city.
The idea for an online bookstore that catered to the specific preferences of Indian customers came to the two graduates of IIT Delhi's computer science program while they were working
as programmers at the software development center of the Seattle-based e-commerce giant Amazon.com in Bangalore.
The company's headquarters are located in Seattle. Amazon did not have, and still does not have, a localized version of its e-commerce platform.
As a result, the two Chandigarh residents decided to leave their employment in September 2007, at which point they pooled together Rs. 4 lakh from their savings and established Flipkart.
Flipkart's target market size
Flipkart is geared toward everyone who uses the internet but does not have time to go shopping in physical stores. Despite the fact that its target audience is dispersed throughout a variety of market categories,
since customers of different demographic backgrounds may find items that appeal to their interest, the majority of its audience is comprised of people who are between the ages of 16 and 55.
It focuses on customers who are interested in having a wide selection of options to choose from and who would rather buy in the comfort of their own homes.
It makes an effort to spread its services to every area of the nation in which it is practicable to make deliveries.
It devises Undifferentiated marketing strategy methods to attract the attention of its audience, the members of which own the buying power, in order to persuade them that shopping online is preferable to shopping in conventional stores.
Flipkart product and services
The company sells a variety of products including books, movies, music, games, consoles, TVs, mobile devices, digital cameras, digital cameras, garments, shoes, home appliances, and network components for computer networks. Flipkart Online Services serve customers based in India.
Flipkart Subsidiaries
Myntra, PhonePe, Mallers, eBay, Ekart, Jeeves, Mech Mocha, Upstream Commerce, Ugenie, DSYN Technologies, AdIQuity Technologies, Jabong, ClearTrip, Shopsy, Yaantra, Liv.Ai, F1 Info Solutions and Services,
Fx Mart, Appiterate, ngpay, Mime360, WeRead, Chakpak, and Sasta Sundar are all subsidiaries of the Flipkart. Flipkart In 2018 Upstream Commerce in order to solidify its position in the dynamic Israeli startup environment and further its research into data-driven pricing algorithms.
The community membership software platform Ugenie was acquired by Flipkart in 2010, marking the company's first acquisition.
Flipkart Parent Organization
Walmart, a multinational retail corporation headquartered in the United States, paid US$16 billion (or $20 billion) to purchase a 77% controlling share in the Indian e-commerce platform Flipkart in August of 2018.
Walmart said, with the completion of this transaction, that the omnichannel retail industry had significant potential for future expansion.
Walmart had 10,585 shops and clubs in 24 countries, each of which operated under one of 46 different identities. In the United States of America and Canada, the business goes by the name Walmart.
In Mexico and Central America, the business is known as Walmart de México y Centroamérica. In India, the business is known as Flipkart Wholesale. Its activities in Chile, Canada, and South Africa are all entirely owned by the company.
Flipkart business model
The business strategy that Flipkart uses is known as a B2C model, which stands for "business to consumer."
The company's first business strategy was one in which it sold books and a variety of other things directly to individual customers.
It has evolved into a marketplace with a vast selection of things, ranging from fast-moving consumer goods to technological goods and literature.
According to Flipkart's website, the company offers more than 80 different categories and over a million different vendors from all around India.
Following Walmart's purchase of Flipkart, this company became an omnichannel service provider and continued to use the same business strategy.
Flipkart funding and investors
Over the course of its 26 investment rounds, the e-commerce platform Flipkart has amassed over $12.6 billion in total funds.
The most recent round of funding that Flipkart received brought in a total of $233 million for the firm from the holding company that is domiciled in Singapore.
The firm used all of its available resources in preparation for its two most important sales events, which were the Flipkart TV Days and the Big Bachat Dhamal.
On July 12, 2021, the eCommerce behemoth obtained a prior fundraising amount of $3.6 Billion from a Corporate Round round headed by GIC, Canada Pension Plan Investment Board, SoftBank Vision Fund 2, Walmart, and other investors.
This round was part of a larger investment effort.In the year 2007, Flipkart got its start with an initial investment of $6,000 in cash.
In 2008, a financing contribution of one million dollars came from the venture capital company Accel India. By the year 2012, Flipkart had already achieved the status of a unicorn business,
and South African Technology Major Naspers had announced plans to provide further capital of $150 million.
Following the completion of the acquisition of Myntra by Flipkart in the year 2014, DST Global provided the company with the resources necessary to secure a financing amount of 210 million dollars.
Over the course of its 26 investment rounds, the e-commerce platform Flipkart has amassed over $12.6 billion in total funds.
The most recent round of funding that Flipkart received brought in a total of $233 million for the firm from the holding company that is domiciled in Singapore.
The firm used all of its available resources in preparation for its two most important sales events, which were the Flipkart TV Days and the Big Bachat Dhamal.
On July 12, 2021, the eCommerce behemoth obtained a prior fundraising amount of $3.6 Billion from a Corporate Round round headed by GIC, Canada Pension Plan Investment Board, SoftBank Vision Fund 2, Walmart, and other investors.
This round was part of a larger investment effort.In the year 2007, Flipkart got its start with an initial investment of $6,000 in cash.
In 2008, a financing contribution of one million dollars came from the venture capital company Accel India. By the year 2012, Flipkart had already achieved the status of a unicorn business,
and South African Technology Major Naspers had announced plans to provide further capital of $150 million.
Following the completion of the acquisition of Myntra by Flipkart in the year 2014, DST Global provided the company with the resources necessary to secure a financing amount of 210 million dollars.
Flipkart partnership
August 2019 marked the beginning of Flipkart's partnership with Authentic Brands for the purpose of licensing and distributing Nautica in India.
On April 12, 2021, Flipkart, India's biggest e-commerce platform, signed a deal with the Adani Group to boost its supply chain and logistics infrastructure.
On September 8, 2021, Flipkart partnered with Hopscotch, the most prominent brand in the Indian childrenswear industry.
In September 2021, Flipkart entered into a partnership with Urbanic in order to reach youthful customers all around India.
Flipkart competitors
The Indian division of Amazon is the primary competitor for this service, along with the local competitor Snapdeal.
As of March 2017, Flipkart had a market share that was equivalent to 39.5% of India's e-commerce sector.
A position that was boosted by its purchases of Myntra and Jabong.com, Flipkart is notably dominating in the sale of clothes, and it has been characterized as being "neck and neck" with Amazon in the selling of gadgets and mobile phones.
eBay, Etsy, and Snapdeal are some of the companies that compete with Flipkart in the e-commerce space.
Flipkart's future growth plans
Although Flipkart's founders Sachin Bansal and Binny Bansal are no longer employed by the company, the brand has managed to maintain its prominence despite the many difficulties it has faced.
In the history of the Indian startup scene, Flipkart has emerged as one of the most prominent companies. Flipkart has never been one to shy away from taking chances, which is one of the primary reasons for its success.
It has changed quite a bit over the last 12 years, expanding into new areas such as books, electronics, home items, and other areas, and it will continue to do so regardless of whether or not its shareholders or rivals change.
The significant investment made by Walmart in Flipkart will result in improved customer service and a stronger position in the market.
In the near future, we may anticipate innovations from Flipkart that will include advancements in e-commerce, an expanded product selection, improved items, and updated integrations with local companies. These are just some of the innovations we can look forward to.
Flipkart's mission and vision
The present mission of Flipkart is "to become Amazon of India," and the vision of Flipkart is to "provide a great customer experience.
Flipkart aims to provide a great customer experience by providing huge discounts, good UI for the website, and good after-sales service on their products.
Flipkart mergers and acquisitions
In 2012, Praveen Sinha, Lakshmi Potluri, Arun Chandra Mohan, and Manu Kumar Jain launched the e-commerce website Jabong.com. Jabong.com specializes in Indian fashion as well as lifestyle products.
In April of 2017, Flipkart completed the acquisition of eBay India in return for equity. Following this transaction, eBay made a financial investment of $500 million in Flipkart.
In May of 2018, after the announcement that Walmart would be purchasing a 77 percent share in Flipkart, eBay decided to sell its investment in the Indian e-commerce company for around $1.1 billion.
After having previously participated as a seed investment in Mech Mocha, Flipkart has now bought the game firm.Flipkart has acquired Mech Mocha, the company that owns the country's first live social gaming platform. The e-commerce giant that is owned by Walmart finalized the deal in November 2020 for an undisclosed sum.
Some of these games include Ludo, Carrom, Snakes and Ladders, and Cricket.
Flipkart investment
Flipkart has been the recipient of a number of investments due to its status as an industry pioneer in the field of e-commerce and as a rapidly expanding corporation.
To this day, Flipkart has contributed a total of 28 investments, of which 26 have been designated as lead investments.
The most recent investment made by the corporation was in the Marketplace business and has a value of $553,2 million. This investment was made on March 31, 2022.
Conclusion
One of India's most important online shopping sites is called Flipkart. It began operations in October of 2007, with Bengaluru serving as the location of its headquarters at the time. The internet business was first established by Sachin Bansal and Binny Bansal as an online bookshop.
However, as the company's notoriety increased, it flourished and extended its operations to include other areas of operation.The online marketplace began offering a wide range of other items, including movies, music, and mobile phones, amongst others.
Due to the fact that e-commerce is gradually bringing about a change in the world of retail and is gaining its footing in India, Flipkart has developed at a quick speed and constantly added a variety of new product categories to its collection.
FAQs
1. Why is Flipkart successful?
When people think of online book retailers, Flipkart is the first name that comes to mind. This trend is likely to continue. Other portals, such as Uread and Dial-a-Book, are having difficulty establishing their brands in the minds of consumers despite their best efforts.
Flipkart has significantly expanded its product offerings over the last few years, and currently, they sell anything from mobile phones to household appliances.
2. What is the story of Flipkart?
Sachin and Binny Bansal are responsible for launching Flipkart. Both of them graduated from IIT Delhi in 2005, and their initial experiences in the retail business were gained when they were employed by Amazon.
The two individuals had the goal of providing people living in India with an online shop that was constructed on Indian soil, which resulted in the birth of Flipkart.
3. What is unique about Flipkart?
The costs of doing business on Flipkart are cheaper than those associated with using other e-commerce portals. It is possible to become a top seller with a little initial expenditure, regardless of whether you are a manufacturer, vendor, or supplier.
The marketplace makes it possible for you to enjoy all the advantages associated with making sales without any restrictions.
4. Who is more successful, Amazon or Flipkart?
Flipkart was more effective in building a favorable consumer feeling during the 2021 holiday sales than Amazon India did, according to a review of customer experiences conducted during the event.