The success story of Flipkart, how India’s first e-commerce company started
By Sanjay Maurya
E-commerce (Electronic Commerce) is the use of platforms that make it easier to buy and sell products over through the internet. Executing business transactions requires exchanging digital funds and data.
Although online shopping platforms such as Flipkart, Amazon, and Alibaba are the most well-known examples of e-commerce, the term also refers to other kinds of digital activities such as online auctions, online ticketing, and payment gateways.
Retails Ecommerce Sales growth report Worldwide
- Latin America – 36.7
- North America – 31.8%
- Central & Eastern Europe – 29.1%
- Asia – Pacific – 26.4%
- Western Europe – 26.3%
- Middle East-Africa – 19.8%
- Worldwide – 27.6%
E-commerce websites, unlike physical stores, run 24 hours a day, 365 days a year. You’re always available to customers, making your company’s products/services more accessible.
Flipkart (story of Flipkart) is an Indian e-commerce firm based in India and registered as a private limited company in Singapore. Today, we’ll take a look at Flipkart’s rise to stardom.
It’s difficult to believe that a single small business can radically change the way we shop. The company has done exactly that. In 2007, e-commerce was still considered a distinct market, and the majority of Indians shopped offline.
The Internet was taking over the world, and Steve Jobs had just released the world’s first iPhone, which was about to upset the whole smartphone market in the coming years.
Two Indian software engineers, Sachin and Binny Bansal witnessed the changing dynamics of technology and saw the power of E-commerce. While there were only 50 million internet users in India at the time, they understood that with the introduction of smartphones, more Indians would join the internet.
They planned to take advantage of this opportunity to create an online shopping platform that would boost India’s buying experience.
In today’s India, there are over 570 million internet users, and the number of people purchasing online has risen dramatically. What began as a two-man ambition to create India’s most trusted online shopping platform has grown into Flipkart, the country’s largest e-commerce site, with over 80 million products over 80 categories, and over 100 million customers.
About founders of Flipkart Sachin and Binny (story of Flipkart)
Sachin and Binny were both studying B. Tech at IIT Delhi in 2005. During the summer break, most students went home, but Sachin and Binny were stuck on campus because they didn’t finish their projects on time. The two met for the first time while working on their respective projects in the same lab.
On a side note, Binny had one of his most profitable summers, as he met both his future business partner Sachin and his life partner Trisha at the same lab, though He was unaware of it at the time.
Sachin and Binny only became friends. They traveled to Bangalore for work after graduation, along with a couple of other students from their college. At the time, Sachin was employed by Techspan, while Binny was employed by Sarnoff. Sachin started working for Amazon in 2006, and Binny joined him later that year.
The Journey of Success (story of Flipkart)
It’s noteworthy to remember that Binny Bansal got rejected twice by Google. He worked for Amazon.com for nine months. Binny and Sachin understood that India’s e-commerce sector was little at first, so they decided to launch a “Comparison Search Engine.” However, in 2007, they both quit Amazon.com and founded Flipkart, an e-commerce startup.
Customers appreciated Flipkart’s assurance and trust element. The company expanded its rapid service and delivery became the company’s hallmark as word spread in a positive tone. The business grew, and the e-commerce site established itself as India’s leading platform.
Forbes India Rich List established its first recognition in 2015. Binny and Sachin Bansal were named India’s 86th wealthiest persons. Their combined net worth was estimated to be $1.3 billion. Despite the presence of Amazon.com and other e-commerce platforms, their vision led them to higher goals, as the company continued to grow its business.
Awards and recognition (success story of Flipkart)
- The Economic Times named him Entrepreneur of the Year for 2012–2013.
- Founders debuted at #86 on Forbes’ India Rich List, with a combined net worth of $1.3 billion.
- Founders were selected to Time magazine’s annual list of the worlds’ 100 most influential people in April 2016.
Walmart Acquires Flipkart (success story of Flipkart)
In May 2018, Walmart, the American retail conglomerate, purchased a 77 percent stake in Flipkart. Binny Bansal, Tencent, Microsoft, and Tiger Global will own the remaining 23%. With a 77 percent ownership worth $16 billion, the young entrepreneurs have become one of India’s most successful entrepreneurs.
Walmart has stated that it will finance the round with a mix of newly issued debt and cash. A total of $2 billion in new equity funding has been invested in the company. They also stated that both companies’ branding and operating structures would be maintained.
Sachin Bansal left Flipkart
Shortly after the acquisition, Sachin Bansal quit the company. The years of bonding between the two Bansals have finally come to an end, and they are free to follow their individual goals.
Sachin’s major contribution has been in molding Flipkart in its nascent years, Binny Bansal said. Sachin served as CEO until January 2016, and it was his long-term vision that helped the company to become one of India’s most well-known companies. His presence in the 2016 Times 100 List was a testament to his success.
Binny Bansal expressed how much Sachin would be missed among Flipkart’s staff. Binny stated that Sachin has been a good friend and guide for the past one and a half decades since they had met. He went on to say that Sachin’s name is linked with Flipkart’s success.
Binny praised his partner-friend, saying that Sachin encouraged and pushed everyone to think large, to make huge bets, and to think about customers and India. At Flipkart, there was no milestone that Sachin didn’t celebrate.
FAQ
Who is the real owner of Flipkart?
Flipkart is an Indian e-commerce firm based in India and registered as a private limited company in Singapore. Sachin Bansal is the co-founder of Flipkart. Two Indian software engineers, Sachin and Binny Bansal witnessed the changing dynamics of technology and saw the value of E-commerce. They planned to take advantage of this opportunity to create an online shopping platform that would boost India’s buying experience.
How was Flipkart started?
Flipkart was founded by Sachin and Binny Bansal. Both IIT Delhi grads from 2005, were first introduced to the retail industry while working at Amazon. The two wanted to provide Indians with an internet store that was built in India, which led to the creation of Flipkart.
Did Walmart buy Flipkart?
In May 2018, Walmart, the American retail conglomerate, purchased a 77 percent stake in Flipkart. Binny Bansal, Tencent, Microsoft, and Tiger Global will own the remaining 23%. With a 77 percent ownership worth $16 billion, the young entrepreneurs have become one of India’s most successful entrepreneurs.
Which is better Amazon or Flipkart?
According to Survey, Flipkart is the most trusted, and Amazon offers a quality experience. The company includes many well-known Indian brands, but Amazon’s user experience is outstanding. As a result, both Flipkart and Amazon are well-known in India.
Why is Flipkart successful?
The platform began to sell a range of other products, including music, mobile phones, and movies. The company expanded at a rapid speed, continually adding numerous new item categories in its inventory as e-commerce rapidly revolutionized the world of retail and gained popularity in India.
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