“Things work out best for those who made the best of how things work out”
– John Wooden
Looking back in 2007, all other websites were struggling to satisfy customers in Indian market, Flipkart came up as a boon to the ecommerce industry.
Flipkart was founded by two young IIT graduates who left Amazon with the idea of starting a comparison search engine. They grew up in Chandigarh and completed their schooling at St.Anne’s convent, Chandigarh. Though they share the same last name, they are not related to each other. Coincidently, Sachin Bansal and Binny Bansal were the students of Computer Science engineering at Indian Institute of Technology, Delhi.
After graduation, Sachin Bansal joined Techspan and served as an associate for few months. They both met again in Amazon, where Sachin Bansal joined as a senior software engineer. After six months, Bansal’s left the company with the idea of creating a comparison search engine. But, then they realized, e-commerce industry in India was untapped. So, they decided to start an e-commerce website for selling books with the initial investment of Rs.200, 000 each.
The Duo launched the website from their two bedded apartment in Bangalore. They tried to concentrate on the things, which other e-commerce companies struggled to satisfy their customers. They focused on the customer service and easy payment options for the goods delivered. Initially, they faced the challenge of setting payment gateways and procuring orders from small distributors. In order to target right customers, duo provided Flipkart bookmarks to the people who came out of book store with books.
VVK Chandra was the first customer to order a book named “Leaving Microsoft to change the world” from Hyderabad. Bansal’s travelled across Bangalore on their own scooters to deliver orders. Flipkart raised their first investment of US $1 Million from Venture capital funds Accel India in 2009. As the company continued to grow, investors approached them automatically and the company started selling electronic goods, fashion and life style products as well. For easy payment options to its customers, Flipkart introduced ‘Cash on Delivery’ service, which many e-commerce companies providing as an option today. Flipkart has their own supply chain management for delivering goods on time with quality.
Terrific performance by Flipkart increased their sales to 200 Million Indian rupees in the year of 2010. In the same year, Flipkart acquired WeRead and started growing via acquisitions. Flipkart also brought Letsbuy.com (2012) and the India’s famous fashion apparel Myntra.com (2014) under its cap. In the year of 2014, Flipkart achieved the Gross Merchandise Value of $1 Billion per month.
Flipkart tied up with Motorola and Xiaomi for launching their products in India before the rest of the world. Moto G and Mi mobiles had a tremendous reach among the Indian customers and Mi3 mobile created a record booking of 20000 mobiles in just 5 seconds.
The Big Billion Day, a Flipkart initiative claimed that it created a record sale of INR 650Crore in a single day. On the same day, Flipkart faced many technical issues on their website that led to criticism. Though there are ups and downs in its journey, Flipkart strikes the mind of Indian customers when it comes to ecommerce. Flipkart recorded the gross merchandise value of $1 Billion in 2014 and the company has set a target to achieve GMV of $8 Billion in 2017. By mid of 2016, Flipkart is planning to raise USD $5 Billion through an IPO, that will value the company over USD $30 Billion.
Though the idea of Flipkart is not unique, the quality of service differentiated them from the competitors and paved the way to their success. Flipkart has a capability to become the first ever $100 Billion company in India.
Corporate Valley wishes success to Flipkart!