FLIPKART INDIA LIMITED Harpreet Bansal CSI-3rd year 09119020
Flipkart is an Indian e-commerce company founded by Sachin and Binny Bansal, headquartered in Bangalore, Karnataka .The company acts as a mediatorbetween sellers and customers and is regarded as the Amazon of India.
ABOUT THE COMPANY Founded in 2007, by Sachin and Binny Bansal. Started with 4 Lakhs funding by owner themselves. Raised 2 rounds of funding from Accel India and Tiger global management. Rupees(in crores) Fiscal Year 4 2008-09 Revenue Generated: 20 2009-10 75 2010-11 5000 By 2015(expected) Currently has 11+ million titles of books and sells ~20 items per minute. Other items include electronics, mobiles, Music, Games etc. Ranks in top 30 websites in India-based on traffic rankings-8,000,000 visits every month and own delivery network in 27 cities.
BIOGRAPHY: Both are residents of Chandigarh. Both are graduates(B.Tech) in Computer Science from IIT-Delhi 2005 batch. They even went to same schools. But came to know each other at IIT-Delhi. Graduated in 2005 and both started working in Amazon in 2006.Sachin and Binny stayed at bangalore as roommates. They worked at Amazon till 2007 Sachin’s family is business oriented while Binny’s father worked in a bank. Both their families were very supportive to them in their earlier days. Being an entrepreneur was considered better than doing a job in Sachin’s community.
IDEA AND CREATION Working for Amazon for 2 years made them bored as they didn’t learn new things there. Thought of creating something on their own and for betterment of society. Started to create comparison shopping website, but found there was none. Desired to create an easy to use e-commerce website. Started selling books- no damages, no touch & feel, people can trust them for 100/- or bit more, better margins etc. Profit was never given preference-sometimes had to face loss also. Customer oriented working methods. Perfect for Indian mentality. They knew that the current FDI regulations do not permit any foreign company to set up a majority owned Indian subsidiary to sell goods in India.
HISTORY Started with 2 bedroom apartment in bangalore. Applied the consignment model initially. As investments came, built warehouses in different cities to cater the demands. Initial funding by themselves. Later funding come in mixed ways. Setting up Technological part like Catalog Management System, Vendor Management System, Customer Service Consoles-easy way. Setting up company, getting a bank a/c, tie-up with distributors and sellers- hard way. Initially started word of mouth advertisement- blogs, startup meets, book fairs. Only two rivals- IndiaMart and RediffBooks -they sold a wide variety of products, but quality and logistics was not up to the mark. Currently follows a mix of consignment and warehouse model.
HOW FLIPKART IS DIFFERENT FROM OTHERS: Discoverability: They played well with the SEO thing. Eg- Yahoo News Different Modes of Payment: CoD Credit Card EMI and electronic wallet 30 day replacement guarantee Expensive goods insured while in transit Order via phone and transaction via DD/Cheque Maintains its own delivery status Inventory Delivery standards
OBSTACLES FACED AND HOW THEY CATERED THEM: Initially had no funding for starting a venture, invested 4 lakhs themselves to start the company. Having a tie-up with the seller was very difficult. Had only 10 sellers tied up with them initially. Delivery and logistics need a great deal of improvement to meet their demands. Getting trust of customers is not easy. Getting the business model right was very difficult and the model needs to be changed based on experience.
SACHIN AND BINNY’S PERSONALITY Passionate: Both the entrepreneurs were not satisfied with their jobs and tried to create something of their own inspite of high salaries offered. Hard working: Operated the company from a 2BHK flat for 3 months. Gave their personal mobile numbers on website to address to customer’s queries. Risk Taker: Left their jobs for starting their own venture. Faced losses sometimes in order to provide better facility to customer. Thinking Big: Amazon recently tried to buy Flipkart, but the offer was refused by them. Opportunity Seeker:When they saw that there are no e-commerce websites in India and the potential is huge, they created their own. Patience:After starting the company, they did not get even a single order for months, still they did not lose hope.
RECENT AQUISITIONS: 2010: WeRead, a social book discovery tool. 2011: Mime360, a digital content platform company. 2011: Chakpak.com is a Bollywood news site that offers updates, news, photos and videos. 2012: Letsbuy.com is Indias second largest e-retailer in electronics. Flipkart has bought the company for an estimated US$ 25 million.
SACHIN’S TIP FOR THE COMING ENTREPRENEURS "Don’t start out alone, it helps to have a co-founder when things are not going your way. Perseverance and hard work is very important. The core of any business is to earn money. You have not done your job well until you find a stranger who is willing to open his/her wallet to give you money for the services/products that you a offering. The next step after that is to focus on scaling it up well." Thank You..