A glimpse into any success story shows a path breaking idea at the tale heart. Flipkart is no exception. It is not the idea itself but the faith to turn ideas into action and action into results is what describes a true success story. Measured by that criterion, Flipkart has been extremely successful.
Back in 2007, when Flipkart was begun, Indian e-commerce industry was at initial steps.The company is registered in Singapore, but their headquarters are in the Bangalore city, India.
Sachin Bansal and Binny Bansal, who were placed on Amazon.com had an idea to begin an e-commerce company in India. Both of them are alumni of IIT, Delhi and are native of Chandigarh, India. They left their jobs in Amazon to start their e-commerce company.
It was a risky move. In a country where people have different tastes and priorities, an e-commerce start-up company will always have huge challenges. In India, people usually prefer to shop in person and purchase goods they see and like. Today, thanks to Flipkart, e-commerce has become one of the fastest developing sectors in India.
How it Started
Flipkart started selling books to begin with. It soon developed and started providing a wide variety of goods. Innovating right from the start, Flipkart has been home to a few of the impressive features of Indian e-commerce.
In the first few years of its survival, Flipkart raised funds through venture capital funding. As the company grew in competence, more funding arrived. Flipkart compensated the investors’ faith with terrific performances year after year. In the financial year 2008-09, Flipkart had made sales to the 40 million Indian rupees. This soon increased to 200 million Indian rupees the following year.
Their last round of Fund raising had increased their value to $ 15 billion, since, as of February 2016, according to Morgan Stanley, their approximated value stands at $11 billion.
When Flipkart was begun, any e-commerce company confronted with two major problems. One was the difficulty of online payment gateways. Not many people preferred online payment and the gateways were not easy to establish. Flipkart dealt with this difficulty by implementing cash on delivery and payment by card on delivery in addition to others. Flipkart was the first to introduce the popular ‘Cash on Delivery’ service, which each online shopping website in India provides as an option today.
The second issue was the entire supply chain system. Delivering the goods on time is one of the most significant factors that decide the success of an ecommerce company. Flipkart addressed this problem by launching their own supply chain management system to deliver orders in a timely manner.
Today, as it stands, Sachin Bansal is the company Chairman and Binny Bansal is the CEO of Flipkart.
Flipkart also acquired a few companies like LetsBuy.com, Myntra.com etc, to better their existence in the market. When Amazon.com entered in India, the competition among the companies has seen many takeovers. Flipkart’s journey from a small book e-retailer to India’s largest e-commerce platform motivates a generation of startups. In a country where stereotypes are common, Flipkart managed to break the norm and change the ecommerce industry in India forever. By the Flipkart’s story that it is proven that if, you have a great idea, and you don’t only think, but you do, success is not far off.