FLIPKART
.png)
The main rivals of the service are Snapdeal, a local competitor, and Amazon India.[7][8] Flipkart had a 48% market share in the Indian e-commerce sector as of FY23.[9] With the help of its acquisition of Myntra, Flipkart has established a stronghold in the clothing industry. It was recently said to be "neck and neck" with Amazon in the retail of electronics and smartphones.[10]
History: Phase of startup, 2007–2010
In October of 2007, two former Amazon workers and IIT Delhi alums, Sachin and Binny Bansal, started Flipkart in Bangalore[11].[12][13][14] In Kormangala, Bengaluru, a two-bedroom apartment served as the company's first location. Their families contributed the first investment, which totaled INR 2 lakh each family. When the website launched in October 2007, the company's offerings were restricted to book sales with nationwide shipping at that time.[15] By 2008, Flipkart had become a household name and was processing 100 orders every day.[16]Flipkart purchased WeRead from Lulu.com in 2010, which enabled it to strengthen its core competency—the digital retailing of books. Otherwise, only a very small number of market participants, including Landmark and Infibeam, shared this area at that time. Flipkart aimed to become the industry leader by offering competitive discounts and putting a strong emphasis on customer service. WeRead had about 3 million readers and about 60 million books in its network. Additionally, user-generated content was noticed by the site, such as book favorites, reviews, and ratings. WeRead's independence and ability to benefit the community allowed it to retain its brand identity even after being acquired.[17][18]2011–2014: expansion, joint ventures, and purchases
Flipkart purchased the digital content catalog of the Bollywood portal Chakpak as well as the digital distribution company Mime360.com[19] in 2011.[20] In 2012, Flipkart opened its DRM-free digital music store Flyte after the acquisition. Flyte was a failure and closed its doors in June 2013 due to competition from free streaming services.[21][22][23][24] Fast and secure data distribution was made possible by HTTP-based encryption technology, which was employed by content distributor Mime360. It used its distribution platform to distribute games, music, and other products.[25]
Flipkart purchased online electronics shop Letsbuy[26] in 2012 and online fashion retailer Myntra for US$280 million in May 2014, focusing on the Indian retail industry.[27] Myntra is still a stand-alone entity with its own target market segments, operating alongside Flipkart.[28]
Flipkart brought back Big Billion Days in October 2014 as a multi-day event that was only available on the Flipkart app. In order to accommodate consumer demand, Flipkart strengthened its fulfillment network and added additional locations.[29] Throughout the event, Flipkart generated a gross merchandise volume of US$300 million, with the highest volumes coming from sales of fashion and the largest value from sales of mobile devices.[30]
Flipkart estimated that mobile ecommerce accounted for 50% of its revenues in 2014, hence the company decided to expand its mobile payment capabilities by investing in Ngpay. After investing in Ngpay, Flipkart closed its internal payment gateway, Payzippy, and combined it with Ngpay. Using a mobile device, one could purchase goods and services using the Ngpay application.[31]
From 2015 to 2018
Flipkart purchased Appiterate, a mobile marketing automation company based in Delhi, in April 2015. Flipkart announced that it will improve its mobile offerings by utilizing Appiterate's technology.[32] For about $260 million, Flipkart acquired about a 34% share in MapmyIndia, a digital mapping firm, in December 2015[33].[34] In the same year, the business also invested in PhonePe, a startup providing UPI mobile payments.[35][36] Later on, PhonePe and Flipkart split up to become two distinct businesses.[37]
Flipkart paid US$70 million to Rocket Internet in 2016 for the online apparel shop Jabong.com, and in January 2017, Flipkart invested US$2 million in TinyStep, a business providing parenting information.38
During their Big Billion Days sale on September 21, 2017, Flipkart sold 1.3 million phones in 20 hours, more than tripling the amount sold on the first day of the same event in 2016.[39] Overtaking Amazon India (33%), Flipkart accounted for 51% of all smartphone shipments into India in 2017.[40]
eBay declared in April 2017 that it will invest US$500 million in the business and sell its Indian affiliate, eBay.in, to Flipkart. eBay had indicated that Flipkart will have access to its global vendor network through the relationship, but these plans were never implemented.[41][42] For between US$700 and US$800 million, Flipkart offered to buy its primary domestic rival, Snapdeal, in July 2017. Snapdeal, which was aiming for at least $1 billion USD, turned it down.[43]
Walmart, an American retail giant, paid US$16 billion in August 2018 to acquire a 77% controlling share in Flipkart, valuing the company at roughly US$20 billion.[44] By 2022, Flipkart will be worth $37.6 billion.[45] In 2023, it intends to become public by listing on the American stock exchange.[46]
Flipkart CEO Binny Bansal resigned on November 13, 2018, following an accusation of "serious personal misconduct". Walmart said that "while the investigation did not find evidence to corroborate the complainant's assertions against Binny, it did reveal other lapses in judgment, particularly a lack of transparency, related to how Binny responded to the situation."[47][48]
2019–2022
Flipkart introduced the Samarth program in July 2019 to assist regional weavers, craftspeople, and artists who would otherwise only be able to sell their goods locally.[49] The Samarth initiative helps them sell their items online outside of their local markets and throughout the nation. It also assists with onboarding. In addition to onboarding, the application assists with categorization and warehouse support, among other online sales operations.[50][51]On November 19, 2019, Flipkart made a $4 million investment in EasyRewardz, a business-to-business loyalty management platform, to enhance customer engagement and rewards.[52][53] The software facilitates the management of brand and bank loyalty points.[54]
Flipkart introduced Flipkart Wholesale in 2020, a cutting-edge online marketplace that gave kiranas and MSMEs a digital presence.[55] To further bolster its wholesale capabilities, Flipkart recently purchased a 100% share in Walmart India Private Limited, which runs the Best Price cash-and-carry business, as part of the same plan.[56]
For US$35 million in July 2020, Flipkart purchased a 27% share in Arvind Fashions Limited's recently established subsidiary Arvind Youth Brands. The Flying Machine brand is owned by Arvind Youth Brands.[57] Additionally, Flipkart launched Flipkart Quick, a hyperlocal 90-minute delivery service for a variety of product categories, including stationery, groceries, cell phones, home goods, and more.[58]
For US$204 million in October 2020, Flipkart purchased a 7.8% share in Aditya Birla Fashion and Retail.[59][60] For an undisclosed sum, Flipkart purchased the intellectual property of game firm Mech Mocha the next month.[61] The acquisition was a component of Flipkart's strategy to attract and keep users by providing casual gaming.[62] Flipkart purchased the augmented reality startup Scapic in November 2020. Scapic offers a set of tools that let users easily and quickly create and share 3D, virtual reality, and augmented reality content.[63]
Eight regional Indian languages—Gujarati, Bengali, Odia, Hindi, Telugu, Kannada, Marathi, and Tamil—were supported by the Flipkart app as of 2021.[64]
Flipkart announced in April 2021 that it will be acquiring the travel booking website Cleartrip.[65] For the Indian and international markets, Flipkart also made a foray into the hotel sector. Cleartrip API is used by Flipkart Hotels.[66] By finalizing a deal with Wego, an online travel marketplace that serves the Middle East and North Africa, Flipkart purchased Cleartrip's Middle Eastern operations. Among them was the Flyin.com website sale.[67]
Shopsy is a social commerce marketplace that Flipkart established in July 2021. It enables individuals and small businesses to sell products directly to customers and resell them via social media networks.[68] Shopsy joined the grocery delivery market in 700 Indian cities in December 2021.[69][70] Shopsy celebrates its second anniversary in July with more than 200 million app downloads.
By 2023, tier-3 markets and other cities will account for over 60% of the user base.[71][72]
When PhonePe—which Flipkart acquired in 2015—moved its whole headquarters to India in 2022, Flipkart split off PhonePe's ownership from its shareholders in Singapore and India, and those shareholders bought shares of PhonePe's India corporation directly. An approximate cash compensation of $700 million was announced to be given to current and former employees who held PhonePe's shares.[37][73]
Shopsy is a social commerce marketplace that Flipkart established in July 2021. It enables individuals and small businesses to sell products directly to customers and resell them via social media networks.[68] Shopsy joined the grocery delivery market in 700 Indian cities in December 2021.[69][70] In July 2023, Shopsy celebrates its second anniversary and achieves 200 million app downloads. Over 60% of its consumers are from tier-3 markets and other locations.[71][72]
When PhonePe—which Flipkart acquired in 2015—moved its whole headquarters to India in 2022, Flipkart split off PhonePe's ownership from its shareholders in Singapore and India, and those shareholders bought shares of PhonePe's India corporation directly. An approximate cash compensation of $700 million was announced to be given to current and former employees who held PhonePe's shares.[37][73]
Flipkart opened its first grocery fulfillment center in Guwahati, Northeast India, in April 2022. According to reports, the center was administered by women with the goals of advancing women's participation in Flipkart's supply chain and assisting female employees in advancing their careers.[74] The Flipkart Foundation was founded by the company in the same month to encourage skill development and entrepreneurship in India's underprivileged neighborhoods.[75]
Flipkart joined the Non-Fungible Tokens (NFTs) and Web3 markets in 2022 by enabling Indian buyers of Nothing Phones (1) to obtain Nothing's NFT via the Nothing Community Dots app. The Polygon blockchain is used by these NFTs to host it.[76] The NFT drop took occurred at FireDrops, using GuardianLink's assistance and Flipkart's NFT marketplace.[77] Flipkart also developed Flipverse, a metaverse-based shopping platform, in October 2022. Users of the platform can shop more interactively and explore products.[78] In collaboration with eDAO, a company that Polygon has invested in, the Flipverse was developed with the goal of offering an experience that is akin to going shopping in a mall and creating an avatar.[79][80]
2023–Today
Flipkart has launched a virtual marketplace called 'Flipkart Student's Club,' which caters to students' academic demands.[81] In 2023, the 'Flipkart Green' initiative was established to cater to consumers seeking certified sustainable products in order to support a sustainable lifestyle.[82]
On January 28, 2024, Binny Bansal announced his resignation from the executive team. He has now fully sold his shares. Binny made over 1.5 billion dollars last year when he, Excel, and Tiger Global Management sold Walmart their whole interest. For $16 billion, Walmart purchased a 77% share in Flipkart in May 2018.[83]
In collaboration with Axis Bank, Flipkart introduced Flipkart UPI, a UPI service, in March 2024.[84][85] It was announced in May 2024 that Google would contribute US$350 million to the business.[86]
Walmart's financial commitment
It was announced on May 4, 2018, that Walmart has defeated Amazon in a bidding war to pay US$15 billion for the bulk of Flipkart.[87][88] Walmart formally declared on May 9, 2018, that it would pay US$16 billion to acquire a 77% controlling share in Flipkart.[89] Sachin Bansal, a co-founder of Flipkart, departed the company after the acquisition. The CEO of Walmart eCommerce US, Marc Lore, oversaw the remaining executive group.[90] Doug McMillon, president of Walmart, mentioned plans to use his experience to grow Walmart internationally while assisting Flipkart with its sourcing and supply chain.[91] Indian traders objected to the agreement, seeing it as a danger to their home market.[92][93]Walmart stated that Flipkart's current minority shareholders "may require Flipkart to effect an initial public offering following the fourth anniversary of the closing of the transactions at a valuation no less than that paid by Walmart" as per a condition of the deal in a filing with the U.S. Securities and Exchange Commission on May 11, 2018.[94, 95]
eBay declared that it would sell Flipkart back to the company for about US$1.1 billion and restart operations in India in response to the news of Walmart's acquisition. The business said that "there is a huge growth potential for e-commerce in India and significant opportunity for multiple players to succeed in India's diverse, domestic market."[41] Additionally, Softbank Group sold Walmart its whole 20% share without sharing the terms of the deal.[96] The purchase of a 77% interest in Flipkart by Walmart was finalized on August 18, 2018. Additionally, Walmart gave the business $2 billion in stock capital.[97][98]
Flipkart confirmed on December 22, 2023, that Walmart will contribute US$600 million toward the company's $1 billion fundraising goal. The acquisition is anticipated to be valued between US$34 and US$37 billion. Following PhonePe's dissolution in 2022, Flipkart's valuation was approximately US$33 billion at the time.[Reference required]
Organizational structure
A study published in November 2014 claimed that Flipkart had nine companies operating under a convoluted business structure, some of which were registered in Singapore and some of which were in India. Co-founders of Flipkart sold WS Retail in 2022 to a group of investors headed by Rajeev Kuchhal.[99] Flipkart Pvt. Ltd., a Singaporean company, is the owner of Flipkart's Indian subsidiaries. Eight Indian businesses are owned by the Singapore-registered company, including Flipkart Internet Pvt. Ltd., which operates the e-commerce marketplace Flipkart.com, Flipkart India Pvt. Ltd., a wholesale company, and Flipkart Logistics Pvt. Ltd., which manages Ekart, an internal logistics division that other e-commerce players can use.[100][101]In 2021, Flipkart launched Flipkart Health+, an app that focuses on using technology to provide healthcare and medications. Obtaining the controlling stake in Sastasundar Marketplace Limited, an established business that was already offering online pharmacy services, helped to launch this.[102]
Notable businesses that the Flipkart Group holds a majority position in are:
Name Sort Since Present Stake
100% of Myntra Fashion 2014[103]
2015 Ekart Logistics [104]
Flipkart B2B e-commerce wholesale 2020 100%[105]
80% of Cleartrip's 2024 travel bookings[106]
Flipkart Health & Healthcare 75.1% in 2021[107]
Flipkart has invested in 27 projects and made 22 purchases, totaling more than US$415 million.[108] Flipkart has made investments in a variety of industries, including consumer electronics, local services, e-commerce, and more.[Reference required] It also updated its seller policies in 2022 in an effort to make it more seller-friendly. This involved lowering the return cost fee and streamlining the rate card.[109] Flipkart is said to have accommodated 1.1 million merchants in 2022.[110]
.png)
.png)
No comments: