FLIPKART STARTUP STORY
WE CAN EASILY STATE THAT FLIPKART STARTUP STORY HAS BEEN PHENOMINAL BECAUSE IT HAS GAINED A HUGE CUSTOMER BASE AND A SECOND NAME ” AMAZON OF INDIA“. ALTHOUGH AMAZON IS ALSO PRETTY ACTIVE IN INDIA BUT STILL INDIAN PEOPLE LOVE MORE TO BUY FROM FLIPKART. IT HAS SEEN A PHENOMINAL GROWTH FROM STARTED JUST SELLING BOOKS AND BUILDING A COMPANY WHICH ONCE WAS VALUED AT $15 BILLION IS A GREAT ACHIEVMENT.
HERE ARE SOME POINTS WHICH WILL HELP YOU UNDERSTAND THE JOURNEY BETTER
WHEN & WHERE
FLIPKART was started in 2007 when E-Commerce industry was just introduced in India the company headquarters is in Bangalore but it is registered in Singapore. Since then there has been no coming back for FLIPKART success story. Also, this startup has also inspired a huge no. of aspiring entreprenuers to dream and become a successful entrepreneur.
SACHIN BANSAL and BINNY BANSAL are founders of FLIPKART. They both are Alumina of IIT Delhi and are native of Chandigarh India. earlier they have been working for Amazon but they left their job to start their own business
It would have been a very daring decision to think of starting an eCommerce site in a country where people love to buy in person .
But thanks to them and there E-Commerce startup that today India has noticed a shift in trend from personal buying to online shopping.
GOODS OFFERED INITIALLY.
At first FLIPKART was selling just books then it soon expanded and began offering a wide variety of goods . A product category with high margins, low maintenance and items that are easy to transport. Books are also non perishable items and their value does not go down with time. FLIPKART did not have to maintain inventory in the initial days when orders were low, as books could be procured directly from distributors based on the number of orders from customers. Added to this, delivery time of books was not extremely critical for initial customers as they ordered mostly for reading at leisure. This choice of product category helped FLIPKART ensure better customer satisfaction in the initial years.
Initially FLIPKART raised funds through venture capital funding, as time passed by it grow in business and eventually more funding arrived. It also paid it’s investors with brilliant ROI performance year after year.
DIFFICULTIES THEY FACED
When FLIPKARTwas launched, every E-Commerce company in India was facing some difficulties.
First problem was that of online payment gateways, as we know in India people do not prefer online payment methods. Flipkart addressed this problem by introducing the concept of CASH ON DELIVERY.Flipkart was the first to introduce this method and today this method is copied by another competitors.
And the second problem was that of the supplying system. The success of any E-Commerce company depends upon the timely delivery of products Flipkart also solved this problem by introducing their own supply chain management system.
As all the companies, when they grow in their size they tend to buy all of the companies in their competition and FLIPKART was no different when it grew it purchased companies like myntra.com letsbuy.com to enhance their market share. Till this time, everyone knew that FLIPKART startup story was a hit.
However, the current valuation of Flipkart has decreased adversely and it is calculated at 5.54 billion dollars.
Also, the startup ,Flipkart is also into talk with Walmart for an investment of upto 1 billion dollars which could potentially help both the companies to take on Amazon in India.