FLIPKART

ANANYA SHARMA
17105076
HISTORY
o Founded in October 2007 by Sachin Bansal and Binny Bansal.
o Headquartered in Bangalore, India.
o Sachin Bansal is the CEO and Binny Bansal is the COO.
o Sachin Bansal and Binny Bansal are both alumni of IIT Delhi. They initially
worked at amazon but later left their job to start a business together.
HOW IT STARTED
o Flipkart went live in 2007 with the objective of making books easily available
to anyone who had internet access.
o Started with books, now the store offers games, mobiles, movies,
healthcare, home appliances, electronics, stationary, clothes, toys and so on.
o Initially, ₹400,000 were spent for making the website and to set up the
business. Flipkart has later raised funding from venture capital funds Accel
India and Tiger Global.
o As of April 2017, the company employs 30,000 people and is valued at $11.6
billion.
MAJOR FUNDINGS
• 2009- $1 million from accel partners.
• 2010- $10 million from Tiger Global.
• 2012- $255 million from Iconiq, accel partners, Naspers.
• 2013- $160 million from Tiger Global, Vulcan Capital, Morgan
Stanley.
• 2014- $1 billion from Tiger Global, Naspers, Accel Partners,
Morgan Stanley, DST, Sofina, Iconiq.
• 2017- $1.4 billion from Tencent, Microsoft, eBay.
MARKET DEMOGRAPHICS
• GEOGRAPHIC: Caters to tier I, tier II and tier III cities.
• USAGE RATE:
i. Third largest internet user base of 124 million.
ii. India’s mobile user base is 87.1 million.
iii. On average, flipkart sells nearly 20 products per minute.
iv. It has 10 million registered users; about a million visit the site everyday.
• AGE GROUP: CONTRIBUTION
i. Youngest online demographic globally.
9%
ii. 75% of users between the age group of 15-34 years. TIER I
TIER 2+3
40% 51%
RURL
• Flipkart.com aims mostly a people who would like to buy
books online in India. What the company calls the
“steroids” for its website are low prices and intuitive
interface that makes it convenient to search for products.
Also the site and the app have a trendy look and feel.
• Flipkart provides free shipping to its customers on every
order. Other unique offerings by the company include the
cash on delivery, 30 day replacement guarantee and e-
wallet.
• It also provides various offers and discounts that
customers can redeem on purchase of products.
ACQUISITIONS
• 2010: WeRead, a social book discovery tool.
• 2011: Mime360, a digital content platform company.
• 2011: Chakpak.com, a Bollywood news site.
• 2014: Acquired Myntra.com in an estimated ₹20 billion deal.
• 2016: Flipkart acquires rival fashion shopping site Jabong for $70 million.
• 2016: In April, Flipkart acquired payment start-up PhonePe.
• 2017: In April, in exchange for an equity stake in Flipkart, eBay agreed to
make a $500 million cash investment and sell its business to Flipkart.
PROBLEMS FACED
 PAYMENT GATEWAYS
1. Not many people preferred online payment and the gateways were
not easy to set up.
2. Flipkart tackled this problem by introducing cash on delivery and
payment by card on delivery in addition to others.
3. Flipkart was the first to implement the popular ‘Cash On Delivery’
facility, which every online shopping website in India offers as an
option today.
 SUPPLY CHAIN SYSTEM
1. Delivering goods on time is one of the most important factor that
determines the success of an ecommerce company.
2. Flipkart addressed this issue by launching their own supply chain
management system to deliver orders in a timely fashion.
3. Ekart logistics is the courier service introduced by flipkart for
delivering products to all major locations across India.
WHY FLIPKART?
o It offers a great user interface (UI). It is easy to search, order,
navigate and compare different products on the website.
o Flipkart offers a broad range of products ranging from books to
electronics to clothes and caters a wide variety of population.
o Flipkart has very wisely used SEO (Search Engine Optimization) and
Google Ad-words as the marketing tools to have a far reach in the
online world.
o SEO refers to the techniques and strategies used to increase the
likelihood of a website appearing on search engine results, namely as
close to the top of that list as possible.
o Flipkart introduced the concept of cash on delivery and card on delivery.
o Orders are delivered within 1 day in tier-I cities, 2-3 days in tier-II cities and
within 4-5 days in tier-III cities.
o Flipkart was also the first to provide EMI (Every Month Installment) option to
the customers for making payments on products.
o A 30 day replacement guarantee is also provided wherein a product can be
replaced or returned with a full refund within 30 days of the delivery.
• Flipkart has also added a prepaid wallet feature to its e-
commerce platform that allows shoppers to store money on
the site and use it to purchase items, without having to reach
for their credit card for each transaction.
THANK
YOU