Flipkart Success Story – Owner | Founder | Revenue | Business Model
Flipkart is an Indian e-commerce company headquartered in Bengaluru, India. Flipkart was founded in 2007 by Sachin Bansal and Binny Bansal, who were former students at IIT Kharagpur. It was India’s largest online shopping portal in 2009 and 2010. In May 2014, Flipkart acquired Myntra for $300 million in cash and stock deal. In April 2015, Flipkart raised an additional $1 billion capital from a consortium of global investors led by Tiger Global Management
Flipkart is an Indian e-commerce company headquartered in Bengaluru, India.
Flipkart is an Indian e-commerce company headquartered in Bengaluru, India. Flipkart was founded in 2007 by Sachin Bansal and Binny Bansal, who were former students at IIT Kharagpur. The company’s main products include books, electronics and home appliances as well as fashion accessories such as shoes or bags; it also sells mobile phones through its online marketplace.[4] In April 2015 it was announced that Flipkart would be acquiring Myntra (which had been owned by Myntra Global since 2012) for US$300 million.[5][6]
Flipkart started out by selling books online but later expanded into other categories like electronics & home appliances; fashion accessories such as shoes/bags etc.;[7] mobile phones through their online marketplace.[8] They now have become one of the largest retailers in India with over 10 million customers per month purchasing over 7 million products via their website each month,[9][10][11] making them one of the largest internet companies in Asia Pacific.[12][13][14].
Flipkart was founded in 2007 by Sachin Bansal and Binny Bansal, who were former students at IIT Kharagpur.
Flipkart was founded in 2007 by Sachin Bansal and Binny Bansal, who were former students at IIT Kharagpur. Sachin, Binny and their friends had the idea to create an online marketplace for books because they felt there was a need for one in India.
The company started with just three employees: Sachin (CEO), Binny (COO) and Kunal Bahl (VCCO). They used their own money as well as funding from family members to start Flipkart.[6]
It was India’s largest online shopping portal in 2009 and 2010.
Flipkart was founded in 2007 by Sachin Bansal and Binny Bansal, who were former students at IIT Kharagpur. The company initially started as an online bookstore, but soon expanded into other areas such as fashion and electronics. In 2010, it became India’s largest e-commerce company after Amazon India acquired a 51 percent stake in it for $1 billion (Rs 6,400 crore).
In 2017, Flipkart merged with Snapdeal to form the largest online shopping platform in Asia Pacific region with over 30 million users per month.[8]
In May 2014, Flipkart acquired Myntra for $300 million in cash and stock deal.
Myntra was an online fashion retailer. It was founded in 2007 by Mukesh Bansal and Ananth Narayanan, along with Ankit Nagori, who had previously worked for Jabong. Myntra’s business model included a large user base, a good brand name and good product portfolio to attract customers. In May 2014, Flipkart acquired Myntra for $300 million in cash and stock deal.
In April 2015, Flipkart raised an additional $1 billion capital from a consortium of global investors led by Tiger Global Management.
In April 2015, Flipkart raised an additional $1 billion capital from a consortium of global investors led by Tiger Global Management. This deal valued the company at $11 billion and made it one of India’s most valuable companies.
Tiger Global Management is a New York-based hedge fund with offices in Hong Kong and Singapore. It invests primarily in technology companies such as Airbnb, Uber and Snapchat. The firm invested $1 billion into Flipkart in exchange for a 15% stake in the company that would be worth over $8 billion if sold today (April 2018). Other investors included Accel Partners (an early investor) along with other prominent venture capital firms like Tencent Holdings Limited ($715 million), SoftBank Group Corp ($2 billion), Alibaba Group Holding Ltd($1 bilion).
In July 2016, eBay Inc. announced that it would buy its competitor Snapdeal for US$1 billion in an all stock deal.
In July 2016, eBay Inc. announced that it would buy its competitor Snapdeal for US$1 billion in an all stock deal. The acquisition was finalized in July 2016 and the company became a subsidiary of eBay following the completion of the transaction.
After the Snapdeal acquisition, Alt36’s group held 26% stake in Flipkart with significant voting rights on its board of directors.
After the Snapdeal acquisition, Alt36’s group held 26% stake in Flipkart with significant voting rights on its board of directors. As per media reports, this was one of the reasons why Manoj Bansal and Kalyan Krishnamurthy were removed from their positions as CEO and MD respectively.
Alt36 is a consortium of global investors led by Tiger Global Management that acquired majority stake in Flipkart back in 2014. Flipkart had promoters Sachin Bansal and Binny Bansal who owned 20% each while SoftBank Group also invested $2 billion ($10 billion at current exchange rates) along with eBay Inc., which valued it at $15 billion ($26 billion). Alt36 now owns 51% stake but does not hold any executive power or decision making power over the company
After acquiring Myntra, Flipkart wasn’t able to meet its own expectations
Flipkart was founded in 2007 by Sachin Bansal and Binny Bansal, who were former students at IIT Kharagpur. It was India’s largest online shopping portal in 2009 and 2010, but faltered after failing to meet its own expectations. In 2011, Flipkart acquired Myntra for $100 million ($0 million today), a move that helped transform it into India’s largest e-commerce company by revenue at the time (and still remains so).
Conclusion
Flipkart has a strong leadership team and a solid foundation for growth. It’s still too early to tell how the deal will affect Flipkart’s business or whether it will be able to deliver on its promise of becoming India’s largest e-commerce company. The company is expected to continue growing, though, as long as it continues expanding into new markets and offering more products at lower prices than its competition.