From a start-up with an investment of just four lakhs rupees, Flipkart has grown into a $100 million-revenue online retail giant in just five years. ‘Don’t count your customers before they smile’ is the company’s operating mantra, and the company is applying it.
Flipkart was originally meant to be a price comparison platform, but there weren’t enough e-commerce sites to compare. So, both the Bansals, who were colleagues at IIT-Delhi, and then at Amazon.com, thought, “why not start an e-commerce site?”
“We will close 2011-2012 with over $100 million in revenue. By 2015, we want to clock in $1billion, but looking at present trends, we may be able to do it sooner,” states Binny, Flipkart’s COO.
Positive word-of-mouth gives Flipkart an edge on the customer side of the business. Extending services like cash-on-delivery and credit card payment at doorstep were introduced to provide ample choice and comfort to customers.
Flipkart is running the marathon with ample support from private equity players such as Accel Partners and Tiger Global, which have collectively invested $150 million in the entity so far. Although profits after tax remain negative, the company’s valuation is soaring thanks to eager participation of these private equity players.
The acquisition of Letsbuy.com signals FlipKart’s ambitions to capture the domestic online market. A burgeoning consumer class, coupled with a rising web-literate population and zealous venture capital funding may just propel Flipkart to become India’s answer to Amazon.com!
There are some things you can’t buy online… For everything else, there’s Flipkart!!
Now for the Ads; witty, funny and they deliver the message.