A company, Flipkart started with an investment of Rs. 4,00,000 for developing its website. Undoubtedly, in the Indian peninsula it has become one of the biggest e-commerce portal. As we know, with this fast pacing of the world everyone face a problem of shortage of time. But with increase in the technology, there is a big push on the consumers to buy online. Let us know how in such a short time Flipkart touched the heights.
In October 2007, Mr. Sachin Bansal and Binny Bansal who are the alumni of IIT Delhi are the founders of Flipkart. In the very initial phase, it only used to sell books as it was registered as Flipkart Online Services Pvt. Ltd. Mr. Sachin is a co-founder of the Flipkart and also an achiever of the Entrepreneur of the Year Award 2012-13 from Economics Times. Soon, the company started selling other products like Fashion and lifestyle products, electronics goods, stationary supplies and many more.
As the numbers of consumers started increasing, the investors also turned to the company and supported its future. The company raised $ 1 million from venture capital funds Accel India in 2009, the $ 10 million in 2010 and in 2011, it raised $ 20 million from Tiger Global. But to everyone surprise the company raised $ 1 billion from the already existing investors which includes Accel Partners, Tiger Global Management LLC, Morgan Stanley Investment Management and Singapore sovereign-wealth fund GIC.
But today, Tiger Global Management LLC which is a New York based private equity company is the largest investor of the Flipkart. The company has raised around $2.7 billion in multiple rounds funding.
Acquisition is also one of the factors in the growth of the company. Flipkart got many firms such as “WeRead” in 2010, Mime360 and Chakpak.com in 2011, Letsbuy.com in 2012 and then the India’s largest online apparel store that is myntra.com in 2014.
There was nothing very unique about the Flipkart as e-commerce was booming everywhere. The one thing that sets this company apart from the others ventures is the quality of the service that they provide, in which their competitors are lagging behind. The company’s big differentiators are the availability of all types of goods of different categories, pre as well as post sales experience, to add to list and enhanced online shopping experience.
The saying is so true “The bigger you get, difficult the challenges you face” and it becomes hard to overcome them. At the early stage there existed two major challenges encountered by Flipkart. First one was to get book vendors on board with Flipkart as it did not have any book store. Second one was of getting a permission for an online based credit card payment. However, the founders faced almost every challenge that came in their way. Both, Sachin and Binny used to stand outside the Gangaram Book Stores, Bangalore in order to give the Flipkart bookmarks only to the people coming out with the book in their hands. They did this to ensure that they are hitting the right audience.
After assuming things, they tried building relations with consumers and suppliers. Sometimes, the things would turn out to be wrong and they would change the plan. But every time, they made a mistake, they took it as a lesson.
In 2014, the company hit the GVM of $1 billion and had 15,000 employees working under them. This is truly an inspiring tech story. It shows how your hardwork pays you. The bigger you dream, the bigger you get.