DONE BY:

PALLOVI ROY
(SEC-B)
INTRODUCTION OF FLIPKART
Flipkart is an Indian e-commerce company founded in
2007, by Sachin and Binny Bansal
[3]
and head-
quartered in Bangalore, Karnataka. It is considered as
the e-commerce company that made online shopping
popular in IndiaAccording to Alexa Internet, Flipkart's
website is one of the top 10 Indian websites.

Flipkart
has launched its own product range under the name
"DigiFlip", offering camera bags, pen-drives,
headphones, computer accessories, etc
HISTORY OF FLIPKART
Flipkart was founded in 2007 by Sachin Bansal and Binny Bansal, both
alumni of the Indian Institute of Technology Delhi. They had been
working for Amazon.com previously. The business was formally
incorporated as a company in October 2008 as Flipkart Online Services
Pvt. Ltd.
[8]
During its initial years, Flipkart focused only on books, and
soon as it expanded, it started offering other products like electronic
goods, Air Conditioners, Air coolers, stationery supplies and life style
products and e-books. The first product sold by them was the book,
Leaving Microsoft To Change The World,bought by VVK.Chandra from
Andhra Pradesh.
[9][10][11]
Flipkart now employs more than 4,500 people,
[12]

and is ranked among the top 10 Indian websites.
[2]
Flipkart's offering of
products on Cash on Delivery is considered to be one of the main reasons
behind its success.
[4][5]
Flipkart also allows other payment methods-
Credit or Debit card transactions, net banking, e-gift voucher and Card
Swipe on Delivery.
[13]

was closed down and all traffic to Letsbuy have been diverted to Flipkart.
[1


MISSION OF THE COMPANY

Providing a delightful customer experience

VISION OF THE COMPANY

To become Amazon of India
OBJECTIVE OF THE COMPANY

Making books easily available to anyone who has internet
access

FUNDING OF FLIPKART
Initially funded by the Bansals themselves with 4Lakh(INR).

Flipkart has since then raised two rounds of fundingfrom venture
capital funds Accel India (in 2009) andTiger Global Management (up
to the tune of US$10million) (in 2010).

Private equity firms Carlyle and General Atlantic arein talks to jointly
invest about $150 million to $200million in Flipkart, according to
sources.

ACQUISITIONS OF FLIPKART
Acquisitions
2010: WeRead, a social book discovery tool.
2011: Mime360, a digital content platform company.
2011: Chakpak.com, a Bollywood news site that offers updates, news,
photos and videos. Flipkart acquired the rights to Chakpaks digital
catalogue which includes 40,000 filmographies, 10,000 movies and
close to 50,000 ratings. Flipkart has categorically said that it will not be
involved with the original site and will not use the brand name.
[

2012: Letsbuy.com, an Indian e-retailer in electronics. Flipkart has
bought the company for an estimated US$25 million.
[
Letsbuy.com was
closed down and all traffic to Letsbuy have been diverted to Flipkart.
[


FINANCE
Initially, the founders had spent 4 lakh to set up the business.It

has later
raised funding from venture capital funds Accel India (US$1 million in
2009)and

Tiger Global (US$10 million in 2010 and US$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, A ccel Partners and Iconiq Capital.

Flipkart's reported sales were 40 million in FY 20082009,

200 million
in FY and 750 million for FY 20102011. FY 20112012, Flipkart is set to
cross the 5 billion (US$100 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 by year 2014. On
average, Flipkart sells nearly 20 products per minute
[
and is aiming at
generating a revenue of 50 billion (US$0.81 billion) by 2015
FINANCE
On November 2012, Flipkart became one of the companies being probed for
alleged violations of FDI regulations of the Foreign Exchange Management
Act, 1999

In July 2013, Flipkart raised USD 160 million from private equity investors,
taking the total to USD 360 million in its recent fund raising drive to build
and strengthen technology and bolster its supply chain.
In October 2013, it was reported that Flipkart had raised an additional $160
million from new investors Dragoneer Investment Group, Morgan Stanley
Investment Management, Sofina SA and Vulcan Capital with participation
from existing investor Tiger Global. With this, the company has raised a total
$360 million in its fifth round of funding, the largest investment raised by an
Internet company in India, emulating InMobis $200 million investment from
Softbank in September 2011. The company valued at approx. 9900 crore
(US$1.6 billion) (Nov 2013), and plans to use the capital raised to improve its
technology and supply chain capabilities, enhance its end user experience and
for hiring

OTHER ACQUISITIONS
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
GROWTH OF FLIPKART COMPANY
Over the past five years, investors have poured nearly $550
million into Flipkart, betting on the companys winner-
takes-all strategy and a fast-growing Indian online retail
market. Organized retail in India is still in its infancy,
largely due to high real-estate prices in the metros and
large cities, the countrys sheer size, and the challenges
involved in creating an efficient back-end or supply chain
in an environment characterized by poor storage facilities,
transportation bottlenecks, and many suppliers from the
so-called unorganized sector.
These challenges have stymied the efforts of many deep-
pocketed Indian conglomerates to build retail businesses
of size, and, despite India changing its laws to allow foreign
retail chains to operate in India in 2012, foreign retailers
havent exactly rushed into the country.

CHASING REVENUE GROWTH
Flipkart India Pvt. Ltd, the wholesale business of Flipkart (See
box for Flipkarts corporate structure, made necessary by
Indian laws that currently do not allow any foreign direct
investment in e-commerce), reported a loss of Rs.281.7 crore in
the year ended March 2013, much wider than its loss of
Rs.109.9 crore in the previous year, as it significantly raised
spending to increase revenue. Revenue soared fivefold to more
than Rs.1,180 crore from Rs.204.8 crore in the previous year,
documents filed by the company with the Registrar of
Companies show. Then, its expenses, too, jumped more than
five times to Rs.1,366 crore from Rs.265.6 crore.
CHASING REVENUE GROWTH
The higher loss and rising revenue is in line with Flipkarts
strategy, which involves pursuing revenue growth and market share
at any costthe same model followed by Amazon.com in the US.
The prevailing view among experts is that it doesnt make sense
for online retailers to worry about profits, at least not till they
acquire enough customers. Customer adoption precedes
monetization, this school of thought says, pointing to companies
such as Amazon, Facebook, and even Pinterest. Pinterest, for
example, is valued at nearly $3.8 billion after its most recent round
of fund-raising generated $225 million. It is yet to make profit.
Amazon still makes a loss and Twitter hopes to turn profitable only
in 2015.

PROMOTIONAL STRATEGIES
Flipkart discounts products, offers customers it reaches
directly the option to pay cash on delivery (and is now in
discussion with India Post, which delivers for Flipkart to
some remote locations, to do this), promises free delivery
for orders worth over Rs.500, and recently started In-a-
day delivery service in some cities for a small charge
(Rs.90).
All of these are required, according to Sachin Bansal,
Flipkarts CEO, because thats what customers want.
In catering to these customers, though, Flipkart has had to
build expertise in e-commerce, creating a marketplace,
payments, and logistics, and investors are hoping that the
benefits of all these will kick in.

CHANGING ECONOMICS
For Flipkart to become the company that defines this
decade in business in India, it will need to address several
challenges.
The first is a counter view to the popular opinion on e-
commerce and Internet businesses eventually becoming
profitable in India. In the last decade, almost all the new
wealth in China was created in the Internet space and it
should have happened in India by now, said Vish Narain,
country head-TPG Growth, TPG Capital India Pvt. Ltd, a
private equity firm
Developing the market is another.
CHANGING ECONOMICS
Meanwhile, even as it continues to hire top talent, Flipkart will
have to ensure it has the kind of people management process
required to motivate and retain people.
This was, apart from its much-vaunted global delivery model,
the secret sauce behind Infosys success in the 1990s. In many
ways, Infosys HR processes set the tone for not just other
Indian IT services companies, but the Indian industry as a
whole.
It will have to do that if it is to reach the target set by its
founders: to touch $20 billion in revenue by 2020.

THANK YOU