How Flipkart built a Rs 2,000 Cr business in 5 years????

How Flipkart built a Rs 2,000 Cr business in 5 years????



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Flipkart was started by Sachin Bansal and Binny Bansal in 2007, both of them are the alumni of Indian Institute of Technology, Delhi.
In Beginning they analyse the E-Commerce market in India and finds a place for them to start a new venture. In the starting time their was no heavy discounts on the products. They were very frugal in terms of money in beginning, always keep eyes on logistic department to save money. They didn't had money at that time for large warehouse so they won't able to differentiate in terms of prices etc., but the only things in which they can differentiate was services. They sit with their suppliers to get correct data base system so they serve better quality of their product.
They learned the environment and knew that what was the demand of the customer.
After opening warehouses in some of the places like Delhi, etc,. they tied up with international suppliers, and now the sale of the product was increasing and investors ready to invest in their company. After that they providing extra services to their customers like cash on delivery, easy return policy, etc.
Their were a huge competition in terms of product but not much in books at that time, Flipkart has a very huge categories of books which were selling online of well known writers and publishers like Penguins, etc, to encourage people to read more.
Now a days we find every type of product on Flipkart, now they are focusing more on customer satisfaction and their preference and make customer relationship.
They kept eyes on each sector of the company from where the product passes, so no one can cheat them.
Flipkart invest money on their customers providing services like Free delivery policy, easy exchange, etc. Thats the reason that's why Flipkart built a Rs.2000 crore business in only 5years.
Because they know what the customer demanded and at what price and their satisfaction level.

Mr. Sachin Bansal and Mr. Binny Bansal, the founders of Flipkart when started this e-commerce online site, had an advantage that they were having an experience of how things work over here, as they were earlier employed in Amazon when they decided to start Flipkart in 2007. Starting their business from selling books they emerged as the fastest growing e-commerce website within no time employing more than 33,000 people across globe. For growing its share company scaled up its business and its acquisition plans over the years. In this video he mentioned that Flipkart will raise a fresh round of funding before going public, adding that the company should exceed their initial target of a billion dollars in gross merchandise value. Mr. Bansal said that the company is still evaluating options for listing in India or abroad. He also talked about how the company generally raises money to sustain operations for 18 – 24 months. He also mentioned about the distribution channels and how they play an important role in the growth of e-commerce websites. They focused on the services provided by them to the customers hence creating positive relationships with the people and creating value to their business. From the initial days quality was their priority. They spend hours with their suppliers as they were running short of workforce when the business was started.

yes flipcart has posted a loss of Rs. 2000 in the year ending march amounting to fifth of it rapidly rising sale as the ratailer paid discounts to attract customer and stay ahead rivals which are snapdeal and amazon while investing in back- end operation. This loss is required as Indian leading online marketplace are need to keep sustaining losses as it seeks to win market share by offering best prices and just because of that flipcart suffer loss as it provide product at best prices and at gppd discount because of its strategy to have a hold on customer.

At the recently concluded Techcircle E-Commerce Forum in Mumbai, Sachin Bansal, CEO and co-founder, Flipkart, shared key insights on how the company scaled up its business over the years and its acquisition plans going forward. He mentioned that Flipkart will raise a fresh round of funding before going public, adding that the company should exceed their initial target of a billion dollars in gross merchandise value by 2015. Flipkart’s much anticipated IPO is 2-5 years away and Bansal said that the company is still evaluating options for listing in India or abroad.