The mega online shopping store Flipkart is in the industry since 6 years now. It was revealed on 9 October that a foreign investor has funded the company with $360 million (Rs 2,228 crore). Certainly this is huge figure. With such enormous investment, online retail chain shall now thrive neck to neck along with big brands such as Shoppers Stop and Future Retail.
The company had received funds worth $200 million (Rs 1,180 crore) in the first round of venture funding in July this year from investors comprising Naspers and Tiger Global. The E-commerce giant raised an additional $160 million (Rs 992 crore) in the second round by new investors — Dragoneer Investment Group, Morgan Stanley Investment Management, Sofina and Vulcan Capital, along with existing investor Tiger Global.
Flipkart is now a name making rounds in the market alongside top companies like P&G and Tata Global Beverages. According to the data Flipkart has provided to Ministry of Corporate Affairs, the company’s revenue in 2001–12 was $77 million (Rs 500 crore). For the fiscal 2012–13, their revenue is estimated to be $350 million (Rs 21 arab).
Two alumni students of IIT Delhi, Sachin Bansal and Binny Bansal, 6 years ago started the company, which is today one of the leading online shopping websites of India. Bansals had worked with Amazon.com previously and now commenced their business with an online bookstore and later expanded to other products and finally introducing a whole marketplace.
Flipkart assured high-end customer satisfaction and adopted an attractive mode of payment of cash on delivery. In time delivery of product and cash on delivery carved an identity for the brand. The strategy proved to be the key to the success.
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