Though ecommerce and online shopping had been in vogue for a long time, the real rage for this started in India only after Flipkart opened shop. The success that this company
Founding Date: 2007
Company Name: Flipkart India Private Limited
Country: Bangalore, Karnataka, India
Company Website: www.flipkart.com
enjoyed is what encouraged many more entrepreneurs to go the internet way to sell their wares and enhance their revenues. Flipkart has its headquarters in Bangalore, Karnataka in spite of being registered in Singapore.
The Establishment of Flipkart
Flipkart was the brainchild of two alumni of IIT Delhi – Binny Bansal and Sachin Bansal. The idea came to them during their stint at Amazon.com and they finally quit their jobs to find Flipkart Online Services Pvt. Ltd in October, 2007.
The company started off as an online portal that sold books at discounted rates and delivered them to the customer’s doorsteps, free of cost. The idea caught up like wildfire and soon the website had a record number of customers. The success of this endeavor encouraged the owners to offer something more than just books on their websites. Thus, they started offering everything from electronic goods to mobile phones and even fashion accessories.
Flipkart has been known for its innovative ideas from the onset and renowned for introducing some very remarkable features to the Indian Ecommerce scene.
In the initial years, Flipkart got funds for its operations through the venture capital process. However, as the website started succeeding and showing profits, organizations made a leeway to offer them funds. None of the investors were disappointed by this decision as Flipkart went on to increase its revenues every year bringing them a lot of profit.
The revenue graph over the years is evidence enough for the impressive performance of the company. Flipkart recorded annual revenue of 20 million INR during the financial year 2008-2009. By 2010, the revenue had increased to 400 million INR and in February 2016, it was estimated to be at $15 billion.
At the time when Flipkart was launched the Ecommerce portals were facing two major problems which was the main reason for online shopping not being a popular option in India. The first problem was the insecurity of using online payment gateways. Flipkart took a step to resolve this problem by offering its customers Cash on Delivery option which was highly applauded and reinstated the customers’ trust in the company.
Getting the order products delivered within a stipulated time was another problem that the Ecommerce businesses were facing. Flipkart came up with a fabulous idea of creating its own supply chain management that would ensure timely delivery of items.
Both these ideas were soon adopted by the other Ecommerce sites which in turn brought them a fair share of success.
Awards and Recognitions
In the year 2012, Flipkart.com won the CNBC TV 18’s Young Turk of the Year Award. The founders, Sachin Bansal and Binny Bansal made it to the TIME’s 2016 list of 100 Most Influential People. Sachin Bansal also won the 2012-13 Economic Times’ Entrepreneur of the Year Award.
Flipkart continues to grow and has acquired companies like Letsbuy.com and Myntra.com with an idea to expand its horizons.