3. THE BEGINNING
• Flipkart was founded in 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
• Initially, they had spent ₹400,000 (US$5,900) only
for making the website to set up the business
• Revenue ₹15,129 crore (US$2.2 billion) (2016)
3
4. RAISING THE CAPITAL
• By August 2015, after raising $700 million, Flipkart
had already raised a total of $3 billion, over 12
rounds and 16 investors
4
7. FLIPKART VALUATION
• For the quarter ended December 2016, the
Pennsylvania based Penn has reduced the value of
Flipkart shares by 34.51% on a year-on-year basis
• This indicates the company’s valuation at around
$9.9 billion
• Macquarie Group’s Optimum Fund slashed the
value of Flipkart holding in by about 3 percent
• This gives Flipkart 10.4 billion valuation
7
10. FLIPKART CORPORATE STRUCTURE
• Since India bans foreign direct investment (FDI) in
online retail, Flipkart has devised a complicated
maze of many inter-connected and some
purportedly independent entities that receive the
massive amounts of money it raises to build an
integrated e-commerce business
10
12. FLIPKART CORPORATE STRUCTURE
• It sources goods from manufacturers, sells those goods
to many of its third-party sellers who then, in turn,
offer those products to shoppers
• Flipkart provides the technology platform and logistics
services and takes a commission on every sale on its
site
• Flipkart has had to set up a complex web of at least
nine entities
• Most of Flipkart’s entities finally lead to the ultimate
holding entity, Flipkart Pvt. Ltd (FPL), which was set up
in October 2011 in Singapore
• There are three entities registered in Singapore as
100% subsidiaries of FPL: Flipkart Marketplace Pvt. Ltd,
Flipkart Logistics Pvt. Ltd and Flipkart Payments Pvt.
Ltd.
12
13. FLIPKART CORPORATE STRUCTURE
• These companies, in turn, hold stakes in five Indian
entities: Flipkart India Pvt. Ltd, the wholesale cash-
and-carry entity; Flipkart Internet Pvt. Ltd, which
owns Flipkart.com and provides technology
platform to e-commerce companies
• The ownership of FPL Singapore largely rests
with Tiger Global, Accel Partners, Naspers and the
Bansals. Tiger Global, the US-based hedge fund
that holds close to 30% in the parent company
13
16. 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
• 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 has
been diverted to Flipkart
• 2014: Acquired Myntra.com in an estimated
₹20 billion (US$300 million) deal
16
17. FLIPKART ACQUISITIONS
• 2015: Flipkart acquired a mobile marketing start-
up Appiterate as to strengthen its mobile platform
• 2016: Flipkart’s Myntra acquires rival fashion
shopping site Jabong for $70 million
• 2016: In April, Flipkart acquired payment start-up
PhonePe
• 2017: In January, Flipkart funded Parenting
Network Tinystep With $2 Million
• In 2015, Flipkart bought a minority stake in a
Navigation and route optimization startup
MapmyIndia to help improve its delivery using
Map my India assets
17
19. FLIPKART SALES AND COMPETITION
• Flipkart's losses double to Rs 2,306 crore in
the year that ended March 31, 2016
• From Rs 1,096 crore in fiscal year 2015
• It reported a revenue of Rs 1,952 crore during
FY16, nearly a 153 per cent increase over the
Rs 772.5 crore it reported in the previous 12
month period
• Amazon posted a loss of Rs 1,724 crore in
FY15 and that figure is only expected to hit $1
billion, a four-fold increase from the previous
year
19
20. FLIPKART SALES AND COMPETITION
• Snapdeal posted a 150% increase in loss
from Rs1,328 crore in the year to March
2015; revenue grew by 56% to Rs1,457
crore from Rs933 crore
20
26. CONCLUSIONS
• Indian e-commerce has huge potential
due to large customer base
• With govt. promoting digital economy, the
e-commerce in India is bound to rise
• E-commerce companies like Flipkart are
early entrants and leading the race
• E-commerce is still a risky business
• It requires continued investment over a
long period of time
26
27. CONCLUSIONS
• E-commerce companies should structure
to suit their business model
• The front end company should be LLC
• Growth through mergers & acquisitions
• The losses for e-commerce companies are
a cause of concern
• E-commerce companies should focus on
generating profits
• There is still open space for new entrants 27
