Flipkart

Initially it was only a book selling website with an objective ‘make books easily available to everyone who had internet access’. It all started with an initial investment of $8000.

Operations:

The major reason of Flipkart’s success is strong backend. Initially it started operations on a consignment model in which the books were procured from suppliers as per the orders placed through website but as business grew Flipkart adopted warehouse model. Today, Flipkart has its own warehouses to store all the consumer items it sells. Inventory in these warehouses is maintained with the help of detailed sales projections. Flipkart has also developed its own delivery network. Nearly 60% to 70% deliveries take place by its own network which helps in free & timely delivery. Flipkart is also famous for consistent customer service because it knows that prompt & efficient service cannot be replaced by discounts. Flipkart has also taken social media seriously. It connects regularly with its customers over Facebook & Twitter.

Flipkart has also introduced path breaking services like 30-day replacement policy, EMI options and free shipping along with the competitive prices. It has overcome the customer’s fear for online bank transactions by introducing options like Cash or credit card on Delivery, payment via DD or cheque.

Growth:

Now, Flipkart has grown upon $100 million e-commerce giant with a goal to become a billion dollar company by 2015. Along with books Flipkart deals in movies, music, games, mobiles, cameras, computers, healthcare, personal products, home appliances and electronics, stationery, perfumes and toys. With over 11.5 million books, 14 different categories, more than 3 million registered users and sale of 30000 items a day, has really made Flipkart, one of the leading e-Commerce website in India. Flipkart is present in 37 cities & they have plans to spread across other cities as well. Recently, Flipkart has taken a big leap by acquiring ‘Letsbuy.com’ which will help it in faster expansion in India. Along with Letsbuy.com, Flipkart has also acquired digital media distribution platform ‘Mime360’ as well as the digital catalogue of ‘Chakpak’.

Flipkart has also started growing its reach in digital domain by introducing ‘Flyte’, a paid music and download service. Flyte has MP3 music from over 700 types in 55 languages available for customers to buy.

Funding:

Flipkart has got ample support from Accel Partners and Tiger Global which are private equity firms. Both of them have collectively invested $150 million in Flipkart so far. The rate with which Flipkart is growing, the acquisitions it did & a strong pool of satisfied customers will definitely help Flipkart to attract more funding.

Achievement:

Flipkart’s biggest achievement is solving the pain points in Indian e-commerce market like supply chain management, inventory management, delivery management, sales predictions, strong customer support, strong vendor network & innovative outlook by introducing unique services. All these factors are going to drive Indian e-commerce industry in future. Flipkart has set an ideal example which will be helpful for other upcoming e-commerce players in Indian e-commerce market. It is extremely important for initial e-commerce companies like Flipkart to succeed as it will send a positive signal about Indian e-commerce industry to foreign investors, customers and future entrepreneurs.