Flipkart, a venture which started with mere Rs. 4,00,000 to develop its website, has now become one of the best e-commerce players in India. It is registered in Singapore, but operates in India. Back in 2007, when the e-commerce business was taking its beginner steps, two guys Mr. Sachin Bansal and Mr. Binny Bansal, who were once workers of Amazon, decide to launch something for the Indian market. Thus, they created Flipkart! Both the founders are an alumni of IIT Delhi. They left their jobs at Amazon to start off their own business.
HOW IT ALL STARTED
To begin with, Flipkart started selling books and was registered as Flipkart Online Services Pvt. Ltd. Soon the company grew bigger to sell various other products like stationery supplies, e-books, lifestyle products, electronic products and fashion products Also, Flipkart was the first e-commerce website to launch cash on delivery system. Innovation was the key features of Flipkart right from its start. It kept introducing new products which were not available in other e-commerce websites. This gave Flipkart a great head start for its future prospectus.
As the customers of Flipkart increased, so did the investors. They showed interest in this venture and started funding. In its initial years, Flipkart raised funds through capitals. In 2008-09, it made a rough 40 million Indian rupees and soon increased to 200 million in the following year. It has also raised 1 billion dollars from its existing investors such as Tiger Global Management LLC, Accel Partners, etc.
Flipkart acquired WeRead, a social book discovery tool in 2010, Mime360, a digital content platform company and Chakpak.com in 2011, Letsbuy.com in 2012, Myntra in 2014 for an estimated 20 billion deal, AdiQuity and Appiterate in 2015.
CHALLENGES – THEN AND NOW
Sachin believes that ‘quality of the service provided’ is the most vital component about Flipkart, which distinguishes it from the rest. Earlier, Flipkart did not have tie-ups with major book vendors because of the unavailability of offline bookstore. Another challenge was the approval of the credit card payment gateway.
Today, Flipkart has almost all the book vendors and publishers on board and has its own payment gateway, Payzippy. The new challenges are to keep up with the customers’ demands and experience. Along with this, other challenges like talent management, supply chain efficiency and technology innovation are in the list.
LONG TERM PLAN
Flipkart plans to invest all the funding in initiating the newer challenges faced by them. They are planning to take logistics to small towns and villages where people can get access to it. Also, they will plan to make payments easier for the customers.
Thank you for reading our article and if you have any doubts/queries/suggestions, please feel free to comment below. If you find this article useful and knowledgeable, please share it with your circle. You can even contact us privately through the contact form or through social networking sites like Facebook, Twitter, Google+ etc.