Motivation story of flipkart for CA student.

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Flipkart is an electronic commerce company headquartered in Bangalore, Karnataka. It was founded in October 2007 by Sachin Bansal and Binny Bansal (no relation).Flipkart has launched its own product range under the name "DigiFlip" with products including tablets, USBs, and laptop bags.As of April 2017, the company was valued at $11.6 billion.

History

Flipkart logo used from 2007 to 2015

Flipkart was founded on 2007 by Sachin Bansal and Binny Bansal , both alumni of the Indian Institute of Technology Delhi. They worked for Amazon.com, and left to create their new company incorporated in October 2007 as Flipkart Online Services Pvt. Ltd.The first product they sold was the book Leaving Microsoft To Change The World to a customer from Hyderabad.Flipkart now employs more than 33,000 people.

In October and November 2011, Flipkart acquired the websites Mime360.com and Chakpak.com. Later, in February 2012, the company revealed its new Flyte Digital Music Store. Flyte, a legal music download service in the vein of iTunes and Amazon.com, offered DRM-free MP3 downloads. But it was shut down on 17 June 2013 as paid song downloads did not get popular in India due to the advent of free music streaming sites.

After the success of its 2014 Big Billion Sale, Flipkart carried out a second Big Billion Sale.where it is reported that they saw a business turnover of $300 million in gross merchandise volume.

In 2015, Flipkart bought a minority stake in navigation and route optimization startup MapmyIndia to help improve its delivery using Map my India assets.

Business structure

In a report dated 25 November 2014, a leading media outlet reported that Flipkart were operating through a complex business structure which included nine firms, some registered in Singapore and some in India. In 2012 Flipkart co-founders sold WS Retail to a consortium of investors led by Rajeev Kuchhal.

Finance

Initially, they had spent ₹400,000 (US$6,200) only for making the website to set up the business.  Flipkart has later raised funding from venture capital funds Accel India ($1 million in 2009)[34][35][36] and Tiger Global ($10 million in 2010 and $20 million in June 2011). On 24 August 2012, Flipkart announced the completion of its 4th round of $150 million funding from MIH (part of Naspers Group) and ICONIQ Capital. The company announced, on 10 July 2013, that it has raised an additional $200 million from existing investors including Tiger Global, Naspers, Accel Partners and Iconiq Capital.

Flipkart's reported sales were ₹40 million(US$620,000) in FY 2008–2009, ₹200 million(US$3.1 million) in FY 2009–2010 and ₹750 million(US$12 million) for FY 2010–2011. In FY 2011–2012, Flipkart is set to cross the ₹5 billion(US$78 million) mark as Internet usage in the country increases and people get accustomed to making purchases online. Flipkart projects its sales to reach ₹10 billion (US$160 million) by year 2014. On average, Flipkart sells nearly 10 products per minute and is aiming at generating a revenue of ₹50 billion (US$780 million) by 2015.

On November 2012, Flipkart became one of the companies being probed for alleged violations of FDI regulations of the Foreign Exchange Management Act, 1999

Flipkart reported a loss of ₹2.81 billion(US$44 million) for the FY 2012–13. In July 2013, Flipkart raised $160 million from private equity investors.

In October 2013, it was reported that Flipkart had raised an additional $160 million from new investors Dragoneer Investment Group, Morgan Stanley Wealth Management, Sofina SA and Vulcan Inc. with participation from existing investor Tiger Global.

On 26 May 2014, Flipkart announced that it has raised $210 million from Yuri Milner’s DST Global and its existing investors Tiger Global, Naspers and Iconiq Capital.

In early July 2014, it was also highly speculated that Flipkart was in negotiations to raise at least $500 million, for a likely listing in the US for 2016.

On 29 July 2014, Flipkart announced that it raised $1 billion from Tiger Global Management LLC, Accel Partners, and Morgan Stanley Investment Management and a new investor Singapore sovereign-wealth fund GIC.

On 6 October 2014, Flipkart sold products worth ₹6.5 billion (US$100 million) in 10 hours in a special one-day event – "The Big Billion Day", claiming they had created e-commerce history, but their hard-won reputation for good customer service suffered because of technical problems, and angry reactions on social media from buyers disappointed with the pricing and availability of products. It claimed to sell a whopping 500,000 mobile handsets, 500,000 clothes and shoes and 25,000 television sets within hours of opening its discounted sale at 8 AM. In December 2014, After it received $700 million from another funding, Flipkart had a market cap of $11 billion. In May 2015 Flipkart has raised $550 million from some of its existing investors, in a deal that raises the valuation of the privately held Indian startup to about $15 billion.

On 20 December 2014, Flipkart announced filing application with Singapore-based companies' regulator ACRA to become a public company after raising $700 million for long term strategic investments in India following which its number of investors exceeded 50. The $700 million fund raised by Flipkart added new investors—Baillie Gifford, Greenoaks Capital, Steadview Capital, T. Rowe Price Associates and Qatar Investment Authority—on company's board.Its existing investors DST Global, GIC, ICONIQ Capital and Tiger Global also participated in this latest financing round.

By August 2015, after raising $700 million, Flipkart had already raised a total of $3 billion, over 12 rounds and 16 investors.

In what has been the company's latest round of funding, Flipkart announced on April 10th 2017, that it has secured a fresh $1.4 Billion at a valuation of $11.6 Billion. Flipkart managed to secure this investment at a post-money valuation of $11.6 billion from the likes of Tencent, eBay, and Microsoft. This fundraising round also witnessed participation from existing Flipkart backers — Tiger Global, Naspers, Accel and DST Global.

On 10th of August 2017, Softbank Vision Fund invested $2.5 Billion in Flipkart.

Awards and recognitionEdit

  • In April 2016, Sachin Bansal and Binny Bansal were named to Time Magazine's list of The 100 Most Influential People.
  • In September 2015, the two founders entered Forbes India Rich List debuting at the 86th position with a net worth of $1.3 billion each.
  • Sachin Bansal was awarded Entrepreneur of the Year 2012–2013 from Economic Times, a leading Indian Economic Daily.
  • Flipkart.com was honored as the Young Turk of the Year at CNBC TV 18's 'India Business Leader Awards 2012' (IBLA).





Comments

  1. boy2587514 December 2017 at 07:25

    Thanks for writing such a good article, I stumbled onto your blog and read a few post. I like your style of writing... motivational canvases

    ReplyDelete

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