Any success story that starts with an idea that shows a path at the heart of the tale. Flipkart is not an exception in that. The different thing about this idea behind Flipkart is it was not just the idea itself but the conviction to convert an idea into action and then action gave the results, this is what required for an idea to convert into a success story. Yardstick measured that Flipkart has been extremely successful.
This was the time when the Indian e-commerce industry was in the initial steps and then at that time, in 2007 Flipkart was launched. The company’s headquarters are in the Bangalore city of India but it is registered in Singapore.
Founders of Flipkart
The two famous names of today Sachin Bansal and Binny Bansal were working for Amazon.com and they both had an idea to start an e-commerce company in India when there was almost nothing related to e-commerce in India. They both are from Chandigarh, India, and also alumni of IIT, Delhi. And then they decided to leave their jobs in Amazon to work full time on their own e-commerce business.
This was definitely a risky move to take this decision for both of them. India is a country where different types of people live and all have various tastes and preferences. Therefore, this was an enormous challenge for an e-commerce start-up. In India, people have the mentality to shop in person and they buy goods after see and like with the bargaining of course. But Flipkart worked on the Indian mentality and they provided products with the best price and quality at home. Today, we must say thanks to Flipkart and the efforts of Sachin and Binny Bansal that now e-commerce has become one of the fastest-growing sectors in India.
How this idea get Started
Initially, Flipkart started with selling books, and then they moved to the various range of products. Flipkart is the real innovation and the home for a few of the striking features of Indian e-commerce right from the start.
How Flipkart got the Funding initially
Every start-up faced difficulties to get funding for it. Flipkart started raising funds through venture capital funding in the first few years of its existence. With the growth of the company, they got more funding. Flipkart also gave the returns to their investors’ faith with the outstanding performances year after year. This was the financial year 2008-09 when Flipkart had made large sales of 40 million Indian rupees. This was the great hike in Flipkart’s sell and soon this increased to 200 million Indian rupees the following year.
As of February 2016, Morgan Stanley reported their estimated value stands at $11 billion and Flipkart’s last round of Fundraising had increased their value to $ 15 billion.
At that time, when Flipkart was launched, people were not familiar with the e-commerce business. So any company faced two major difficulties.
The first issue was with the online payment gateways. People were not aware of the online payment at that time and that’s why they don’t trust to preferred online payment, also the gateways were not easy to set up. Flipkart found the solution to this problem by introducing payment by card on delivery and cash on delivery. Flipkart earns the trust of people who buy this and Flipkart became the first to implement the popular ‘Cash on Delivery’ facility, which is now offered by every online shopping website in India.
The second issue was the entire supply chain system. They were thinking that how they can deliver goods on time and this is one of the most important factors for every business’s success. Flipkart found its solution by launching its own supply chain management system so that customer can get their orders in a timely fashion.
Acquisitions by Flipkart
The next milestone achieved by Flipkart is the acquisition of companies like Myntra.com, LetsBuy.com, etc. Flipkart to better their presence in the market. Flipkart’s largest competition started with the entry of Amazon.com in India. The competition between the companies has resulted in many takeovers. Flipkart’s journey inspires a generation of start-ups from a small book e-retailer to India’s largest e-commerce platform.
In a country where people follow predefined customs, Flipkart succeeds to break the norms and changed the e-commerce industry in India forever. Flipkart proved that if you have an idea and you have the courage to implement that like a doer, the success is not far off.
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