|Type of site||E-commerce|
|Headquarters||Bangalore, Karnataka, India|
|Key people||Sachin Bansal (Chairman)
Binny Bansal (CEO)
|Revenue||₹10,245 crore (US$1.5 billion) (2015)|
|Alexa rank||118 (August 2016[update])|
Flipkart is an e-commerce company founded in 2007 by Sachin Bansal and Binny Bansal. The company is registered in Singapore, but has its headquarters in Bangalore, Karnataka, India. Flipkart has launched its own product range under the name "DigiFlip" with products including tablets, USBs, and laptop bags.
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. The first product they sold was the book Leaving Microsoft To Change The World to a customer from Hyderabad. Flipkart now employs more than 33,000 people. Flipkart allows payment methods such as cash on delivery, credit or debit card transactions, net banking, e-gift voucher and card swipe on delivery.
After failure of its 2014 Big Billion Sale, Flipkart recently completed the second edition of Big Billion Sale held between 13 and 17 October. where it is reported that they saw a business turnover of $300 million in gross merchandise volume.
In a report dated 25 November 2014, a leading media outlet reported that Flipkart were operating through a complex business structure which included nine firms, some registered in Singapore and some in India. In 2012 Flipkart co-founders sold WS Retail to a consortium of investors led by Rajeev Kuchhal.
- 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 Chakpak's 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 has been diverted to Flipkart.
- 2014: Acquired Myntra.com in an estimated ₹20 billion (US$300 million) deal.
- 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.
- In 2015, Flipkart bought a minority stake in a Navigation and route optimization startup MapmyIndia to help improve its delivery using MapmyIndia assets.
Initially, they had spent ₹400,000 (US$5,900) only for making the website to set up the business. Flipkart has later raised funding from venture capital funds Accel India ($1 million in 2009) and Tiger Global ($10 million in 2010 and $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, Accel Partners and Iconiq Capital.
Flipkart's reported sales were ₹40 million (US$590,000) in FY 2008–2009, ₹200 million (US$3.0 million) in FY 2009–2010 and ₹750 million (US$11 million) for FY 2010–2011. In FY 2011–2012, Flipkart is set to cross the ₹5 billion (US$74 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 (US$150 million) by year 2014. On average, Flipkart sells nearly 10 products per minute and is aiming at generating a revenue of ₹50 billion (US$740 million) by 2015.
In October 2013, it was reported that Flipkart had raised an additional $160 million from new investors Dragoneer Investment Group, Morgan Stanley Wealth Management, Sofina SA and Vulcan Inc. with participation from existing investor Tiger Global.
In early July 2014, it was also highly speculated that Flipkart was in negotiations to raise at least $500 million, for a likely listing in the US for 2016.
On 29 July 2014, Flipkart announced that it raised $1 billion from Tiger Global Management LLC, Accel Partners, and Morgan Stanley Investment Management and a new investor Singapore sovereign-wealth fund GIC.
On 6 October 2014, Flipkart sold products worth ₹6.5 billion (US$97 million) in 10 hours in a special one-day event - "The Big Billion Day", claiming they had created e-commerce history, but their hard-won reputation for good customer service suffered because of technical problems, and angry reactions on social media from buyers disappointed with the pricing and availability of products. It claimed to sell a whopping 500,000 mobile handsets, 500,000 clothes and shoes and 25,000 television sets within hours of opening its discounted sale at 8 AM. In December 2014, After it received $700 million from another funding, Flipkart had a market cap of $11 billion. In May 2015 Flipkart has raised $550 million from some of its existing investors, in a deal that raises the valuation of the privately held Indian startup to about $15 billion.
On 20 December 2014, Flipkart announced filing application with Singapore-based companies' regulator ACRA to become a public company after raising $700 million for long term strategic investments in India following which its number of investors exceeded 50. The $700 million fund raised by Flipkart added new investors—Baillie Gifford, Greenoaks Capital, Steadview Capital, T. Rowe Price Associates and Qatar Investment Authority—on company's board.Its existing investors DST Global, GIC, ICONIQ Capital and Tiger Global also participated in this latest financing round.
By August 2015, after raising $700 million, Flipkart had already raised a total of $3 billion, over 12 rounds and 16 investors.
Regulatory Action and Lawsuits
The Government Of India informed the parliament in 2012, that it had asked the Enforcement Directorate to investigate Flipkart Online Services. In August 2014, the Enforcement Directorate claimed that it had found Flipkart to be in violation of the Foreign Exchange Management Act.
On 30 November 2012, Flipkarts offices were raided by the Enforcement Directorate. Documents and computer hard drives were seized by the regulatory agency.
Delhi High Court observed violation of foreign investment regulations by E-Commerce firms including Flipkart.
In January 2016, a public interest litigation came up for hearing which alleges Flipkart of contravention of foreign investment norms. The court asked the Reserve Bank of India to provide the latest circular on foreign investment policy.
In January, 2016, the Department of Industrial Policy and Promotion (DIPP) clarified that it does not recognize the marketplace model of online retail.
In February 2016, Health Minister, J P Nadda, informed that the Maharashtra FDA had taken action against Flipkart, among others, for selling drugs without valid license.
Flyte Digital Music Store
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.
Exclusive product launches
||This section may contain an excessive amount of intricate detail that may only interest a specific audience. (September 2015) (Learn how and when to remove this template message)|
Motorola Mobility, previously owned by Google but then sold to Lenovo, in an exclusive tie up with Flipkart launched its budget smartphone Moto G in India on 5 February 2014; more than 20,000 units were sold within hours of launch on Flipkart. After this Flipkart was looking for a long term tie up with Motorola Mobility, They also launched their Android smartphone, the Moto X, on 19 March 2014. Flipkart later sold the Moto E, cheaper than Moto G, from 13 May 2014.
The sale of high-end smartphone Xiaomi Mi3 produced by Xiaomi Tech was launched in India on an exclusive tie-up with Flipkart. The first batch was sold out within 39 minutes on 22 July 2014, the second in 5 seconds on 29 July 2014. The sale was proceeded on pre-registration mode where more than 150,000 buyers booked for the 5 August 2014 sale. This got sold off in less than 2 seconds. Following this Xiaomi Tech sold 20,000 units in the next sale on 12 August 2014. On 2 September 2014 Flipkart held a flash sale of the Xiaomi Redmi 1S budget Android smartphone which was launched in India in July 2014. 40, 000 units priced at Rs 5999 each were sold within seconds. A further 40,000 units were sold within 4.5 seconds on Sept 9, 2014. The third Redmi 1S sale on Sept 16, 2014 sold 40,000 units in 3.4 seconds; In the 4th round of sale of Redmi 1S, 60,000 units sold in 5.2 seconds on Sept 23, 2014. On 30 September 2014 60,000 units sold in 13.9 seconds. Redmi Note in India exclusively through Flipkart; 50,000 units sold in 6 seconds on 2 December 2014.
- In July 2014 Flipkart launched its own set of tablet, mobile phones & Phablet. The first among these series of tablet phones was Digiflip Pro XT 712 Tablet.
- In July 2014 Flipkart launched its first networking router, under its own brand name named DigiFlip WR001 300 Mbit/s Wireless N Router.
- In September 2014 Flipkart launched its in-house home appliances and personal healthcare brand Citron. The label includes a wide range of cooking utilities and grooming products.
On 13 September 2014, a Flipkart delivery boy molested a house maid in Hyderabad. The house maid's employer has been fighting against Flipkart for justice on this issue, and also for making offline delivery services safe.
On 6 October 2014 Flipkart launched a promotion called 'Big Billion Day' with the intention to increase the popularity of their website by targeting a billion sales in 1 day. This, even though Flipkart achieved the target, led to public outcry and widespread criticism among consumers, competitors and partners, heavily damaging its reputation. Many users could not place orders because of high server load and errors which led to frustration among customers. Many users who placed orders received emails stating that their orders were cancelled. Most of the products were sold for less than cost price, and Flipkart was accused of killing competition. Major competitors filed complaints against Flipkart to the commerce ministry, claiming that selling products lesser than cost prices is against the commerce policy of the country. The Ministry said that they would formulate new trade rules for electronic retail after this incident.
Flipkart received mass criticism on the subject of net neutrality after their announced partnership with Airtel to use the Airtel Zero platform which would have made the Flipkart app free for Airtel Users. On 14 April 2015 Flipkart retracted its decision to use Airtel Zero platform.
Awards and recognition
- In April 2016, Sachin Bansal & Binny Bansal were named in 100 most influential people by TIME
- In September 2015, Sachin Bansal and Binny Bansal entered Forbes India Rich List debuting at the 86th position with a net worth of $1.3 billion each.
- Co-Founder of Flipkart, Sachin Bansal, got Entrepreneur of the Year Award 2012-2013 from Economic Times, leading Indian Economic Daily.
- Flipkart.com was awarded Young Turk of the Year at CNBC TV 18's 'India Business Leader Awards 2012' (IBLA).
- Flipkart.com- got Nominated for IndiaMART Leaders of Tomorrow Awards 2011.
- "6 charts that tell you about Flipkart's growth". FactorDaily. Retrieved 31 May 2016.
- "Flipkart to cut expenses and earn gross profit ahead of festival season". Economic Times. 15 April 2016.
- "flipkart.com Site Overview". Alexa Internet. Retrieved 2016-07-15.
- Zdnet. Retrieved 23 December 2015.
- Times of India. Retrieved 23 December 2015.
- "The Flipkart Story". Flipkart.com. Retrieved 19 April 2015.
- "Flipkart launches its own accessories digiflip". Thinkdigit.com. Retrieved 5 October 2013.
- "Exclusive: Flipkart forays into private label, launches DigiFlip brand". NextBigWhat.com. 25 July 2012. Retrieved 5 October 2013.
- "Digiflip Store Online - Buy Digiflip Products Online at Best Price in India". Flipkart.com. 2010-07-01. Retrieved 2015-02-18.
- "Flipkart Is Valued at $15 Billion After Latest Funding". Wall Street Journal. 2015-05-20. Retrieved 2015-05-20.
- "Flipkart valuation marked down by Morgan Stanley fund to $9.39 billion". Retrieved 28 May 2016.
- "Flipkart Online Services Pvt. Ltd". Tofler.in. Retrieved 18 February 2015.
- "Who ordered the first book from Flipkart and which book was it?". Quora. Retrieved 2014-05-22.
- "Flipkart goes for fashion branding - The Times of India". Timesofindia.indiatimes.com. Retrieved 5 October 2013.
- Geetika Rustagi (4 August 2010). "Now order your next mobile on Flipkart". Livemint. Retrieved 19 August 2010.
- "About Us". Flipkart.com. Retrieved 22 May 2014.
- Flipkart.com: Payments Retrieved 6 October 2012
- "Flipkart announces 'Big Billion Sale' - Free Press Journal".
- "Big Billion Day sale does $300 million". The Financial Express. 19 October 2015. Retrieved 4 November 2015.
- Verma, Shrutika. "Inside Flipkart's complex structure". livemint.com. Retrieved 2016-02-28.
- "Flipkart Buys Social Book Discovery Tool WeRead". VCCircle. Retrieved 15 June 2011.
- Nikhil Pahwa. "Flipkart Acquires Mime360; To Launch Digital Distribution Of Music, E-books, Games". medianama.com. Retrieved 14 October 2011.
- "Flipkart Acquires Digital Content From Bollywood News Site Chakpak". VCCircle. 23 November 2011. Retrieved 1 December 2011.
- "Updated: It's Official Flipkart Acquires LetsBuy.com". medianama.com. 9 February 2012. Retrieved 9 February 2012.
- "Flipkart Buys Letsbuy in Cash-Equity Deal". Business Standard. 11 May 2012. Retrieved 9 February 2012.
- "Finally Dr. Flipkart.com declared patient Letsbuy.com dead.". Fivepoint5. Retrieved 31 May 2012.
- "Big deal: Flipkart acquires online fashion retailer Myntra". The Indian Express. Retrieved 2014-05-22.
- "FlipKart Acquires US-Based Startup 'Appiterate'". IndianWeb2. Retrieved 2015-04-29.
- "Flipkart-owned Myntra acquires fashion and lifestyle site Jabong". 26 July 2016.
- Archana Rai (30 June 2010). "Flipkart: Country's largest online bookstore". The Economic Times. Retrieved 19 August 2010.
- "How much did Flipkart raise through Accel funding in Oct 2009?". Quora. Retrieved 5 October 2013.
- Sengupta, Snigdha. "Is Accel Eyeing a 25X Partial Exit From Flipkart? : STARTUPCENTRAL". Startupcentral.in. Retrieved 5 October 2013.
- Sinha. "Accel India Invests in Flipkart". pluggd.in. Retrieved 25 August 2011.
- "Flipkart Raises $150Mn From Accel Partners, Tiger Global". 31 January 2012. Retrieved 5 May 2012.
- Sudipta Datta; Suman Tarafdar (7 February 2010). "A Tale of Two Book Fairs". Financial Express. Retrieved 19 August 2010.
- "Inlogistics: India's first private train cargo operator". CNBC-TV18. 18 March 2010. Retrieved 19 August 2010.
- Yourstory.in. "Flipkart Raises Fourth Round of Funding; MIH and Inconiq Capital Take Minority Stake".
- Jayadevan PK. "Flipkart Raises Fresh $200 mn from Existing Investors Tiger global, Naspers & Others". NextBigWhat.
- "Cash on delivery". Business Standard. 19 July 2010. Retrieved 19 August 2010.
- Dua, Aarti (28 February 2010). "A winning chapter". The Daily Telegraph. Calcutta, India. Retrieved 19 August 2010.
- "Bibliofile:A Garage Takes Off". Outlook. 22 March 2010. Retrieved 19 August 2010.
- "Flipkart may launch online marketplace on its website". Business Standard. Retrieved 23 July 2013.
- "Bloomberg Business". Businessweek.com. Retrieved 2015-02-18.
- Nikhil Menon (9 September 2011). "e-Commerce: Can the dotcom majors cope with their rising expectations?". The Economic Times. India.
- Tyagi, Akshay. "How Flipkart Helped India Realise Its E-Commerce Dream!". The TechIRIS. Retrieved 26 May 2012.
- ET Bureau. "Enforcement Directorate to probe Flipkart.". The Times of India.
- "Flipkart under ED scanner". The Hindu. Chennai, India. 28 November 2012.
- "Flipkart India Reports Loss of Rs.281.7 Crore". Hindustan Times – via Highbeam (subscription required). 19 December 2013. Retrieved 31 January 2015.
- "Flipkart raises $160 mn in latest funding drive". Moneycontrol.com. Retrieved 2015-02-18.
- "Flipkart raises $160M more from Morgan Stanley, Vulcan Capital, Tiger Global, others". VCCIRCLE.
- Vikas SN (9 October 2013). "Flipkart Raises $160M From Dragoneer Investment, Morgan Stanley Investment & Others". MediaNama. Retrieved 25 October 2013.
- "Flipkart valued at roughly `9,900 crore, says MIH India". Livemint. 26 November 2013. Retrieved 27 November 2013.
- Rajat Agrawal. "Flipkart raises $210 million in financing round led by DST Global". BGR.in. Retrieved 18 February 2015.
- Ankit Pandey. "E-tailer Flipkart in talks to raise $500 mn for likely US listing next year; GIC & T Rowe Price keen on investing". Economictimes.com. Retrieved 18 February 2015.
- "Flipkart raises $1 billion from investors". Indiasnaps.com. Retrieved 18 February 2015.
- Dhanya Ann Thoppil. "India's Flipkart Raises $1 Billion in Fresh Funding". Online.wsj.com. Retrieved 18 February 2015.
- Flipkart sells goods worth $100 million in 10 hours, backlash on social media. The Economic Times. Retrieved 8 October 2014.
- Flipkart hosts biggest ever sale, website crashes. The Times of India. Retrieved 8 October 2014.
- Flipkart turns into Flopkart on big billion day sale. DNA India. Retrieved 8 October 2014.
- "Online shopping spree makes offline retailers cry foul". news.biharprabha.com. IANS. 12 October 2014. Retrieved 12 October 2014.
- "Flipkart now has market cap of $11 billion.". Wap.business-standard.com. 23 December 2014. Retrieved 18 February 2015.
- Thoppil, Dhanya Ann (19 May 2015). "Flipkart Valued at $15 Billion After Latest Funding" – via Wall Street Journal.
- Flipkart files application to become public, raises 700 million dollars. The Times of India. Retrieved 20 December 2014.
- "August roundup: top 5 Indian startups and their investments". Hot Topics. Retrieved 2015-11-02.
- "Flipkart case: ED finds FEMA violation, Rs 1,400 cr fine likely". The Indian Express. 2014-08-20. Retrieved 2016-02-28.
- "Flipkart office was raided by Enforcement Directorate on Nov 30th? [Updated]". NextBigWhat. Retrieved 2016-02-28.
- "Ecommerce companies like Flipkart, Amazon violated FDI Norms: Delhi High Court". timesofindia-economictimes. Retrieved 2016-02-28.
- Mittal, Priyanka. "Delhi high court asks RBI to submit latest circular on FDI policy". livemint.com/. Retrieved 2016-02-28.
- "Marketplace model of online retailers not under India's FDI policy: DIPP". International Business Times, India Edition. Retrieved 2016-02-28.
- www.ETRetail.com. "Action against Snapdeal, Amazon, Flipkart for selling medicines without licence | ET Retail". ETRetail.com. Retrieved 2016-02-28.
- Lal, Abhinav (24 February 2012). "Flipkart to launch 'Flyte Digital Store' in March". Digit. India: 9.9 Media. Retrieved 27 February 2012.
- "Exclusive: Flipkart to Shutdown Flyte MP3 Store; To Exit Digital Music Business". NextBigWhat. Retrieved 29 May 2013.
- "Flyte MP3 Store Shutting Down". ThinkDigit. Retrieved 29 May 2013.
- "Motorola launches Moto G smartphone in exclusive tie-up with Flipkart". Economic Times. 6 February 2014.
- "Moto G launched in India, priced at Rs 12,499 for 8GB and Rs 13,999 for 16 GB". Economic Times. 5 February 2014.
- "Flipkart says it sold 20,000 Moto G phones within hours of debut".
- "Flipkart eyes long-term innings with Motorola post MotoG debut". Economic Times. 10 February 2014.
- "Motorola-Flipkart to launch Moto X today, prices start at Rs 23,999". Business Standard. 19 March 2014.
- "Moto X launch tomorrow, prices start at Rs 23,999". The Economic Times. 18 March 2014.
- "Motorola-Moto E on Flipkart, priced start at Rs 6,999". 15 May 2014.
- "Xiaomi Mi3 Stocks Sold Out within 1 Hour; Flipkart Opens Pre-Registration for 29 July Sale". Ibtimes.co.in. 2014-07-22. Retrieved 2015-02-18.
- "Xiaomi Mi3 Sold Out in 5 Seconds; Flipkart Opens Pre-registration Window for 5 August Sale". Ibtimes.co.in. 2014-07-29. Retrieved 2015-02-18.
- "Money Control Article for MI3 sold out in 2 seconds". Moneycontrol.com. Retrieved 18 February 2015.
- "Flash sale of Xiaomi on 12 August 2014- Economic times". Articles.economictimes.indiatimes.com. Retrieved 18 February 2015.
- "40,000 Xiaomi Redmi 1S units, 3,00,000 customers". Deccanchronicle.com. Retrieved 18 February 2015.
- "40,000 Xiaomi Redmi 1s units go off shelves in 4.5 seconds". Tech.firstpost.com. Retrieved 18 February 2015.
- "40,000 Redmi 1S Smartphones Gone in 3.4 Seconds: Xiaomi". Gadgets.ndtv.com. Retrieved 18 February 2015.
- "60,000 Redmi 1S Smartphones Go Out of Stock in 5.2 Seconds: Xiaomi". Gadgets.ndtv.com. Retrieved 18 February 2015.
- "60,000 Redmi 1S Phones Go Out of Stock in 13.9 Seconds, Says Xiaomi". Gadgets.ndtv.com. Retrieved 18 February 2015.
- "50,000 Redmi Note handsets sold out in 6 seconds". Deccanchronicle.com. Retrieved 18 February 2015.
- "Flipkart delivery boy molests maid in Hyderabad". Deccan Chronicle. 14 December 2014. Retrieved 15 December 2014.
- "Women's safety: E-commerce companies need to do more to ensure quality of offline workforce". The Economic Times. 14 December 2014. Retrieved 15 December 2014.
- "Flipkart co-founders apologise for glitches | Business Standard News". Business-standard.com. 2014-10-08. Retrieved 2015-02-18.
- "Flipkart says sorry for mega snag | Business Line". Thehindubusinessline.com. 2014-10-07. Retrieved 2015-02-18.
- "Future Group's Kishore Biyani, vendors accuse Flipkart of undercutting to destroy competition - Economic Times". Articles.economictimes.indiatimes.com. 2014-10-08. Retrieved 2015-02-18.
- "Centre to look into complaints against Flipkart sale | Business Line". Thehindubusinessline.com. 2014-10-08. Retrieved 2015-02-18.
- "Big Billion Day sale cost Flipkart big; govt takes notice | Business Standard News". Business-standard.com. 2014-10-09. Retrieved 2015-02-18.
- Shyam Balasubramanian (14 April 2015). "Flipkart Pulls Out of Airtel Deal Amid Backlash Over Net Neutrality". NDTV.com.
- TIME 100 Titans - Binny Bansal and Sachin Bansal, Time, 21. April 2016
- "Forbes India rich list: Mukesh Ambani tops for 9th year, Flipkart's Bansals debut at 86th slot". Firstpost. 24 September 2015. Retrieved 24 September 2015.
- "ET Awards 2012-13: How IIT-alumnus Sachin Bansal built Flipkart into a big online brand". The Economic Times. Retrieved 26 September 2013.
- "Flipkart awarded at CNBC-TV18's India Business Leader Awards 2012". Firstpost. Retrieved 10 October 2013.
- "Flipkart.com-IndiaMART Leaders of Tomorrow Awards 2011". Mediavataar. Retrieved 10 February 2012.