Flipkart Internet Private Limited is an Indian e-commerce company, headquartered in Bengaluru.[5] The company initially focused on online book sales before expanding into other product categories such as consumer electronics, fashion, home essentials, groceries, and lifestyle products.[6][7] Since 2018, Walmart has held a controlling stake in the company.
The service competes primarily with Amazon India and domestic rival Snapdeal.[8][9] As of 2023, Flipkart held a 48% market share in the Indian e-commerce industry.[10] In 2018, Flipkart was described as having a dominant position in the apparel segment, bolstered by its acquisition of Myntra, and as being "neck and neck" with Amazon in the sale of electronics and mobile phones.[11]
History
2007–2010
Flipkart was founded in October 2007 in Bengaluru[12] by Sachin Bansal and Binny Bansal, alumni of the IIT Delhi and former Amazon employees.[13][14][15] The company was started from a two-bedroom apartment in Koramangala, Bengaluru, with an initial investment of ₹200,000 from each of the founders' families. The website was launched in October 2007, initially only limited to selling books.[16] Flipkart was reportedly receiving 100 orders per day by 2008.
Business structure
According to a report in November 2014, Flipkart operated with a complex business structure that included nine firms, some registered in Singapore and some in India.[109] Flipkart's Indian entities are owned by Flipkart Pvt. Ltd., which is registered in Singapore. The Singapore-registered entity owns eight Indian companies, including Flipkart Internet Pvt. Ltd, the company that runs the e-commerce marketplace Flipkart.com, Flipkart India Pvt. Ltd, the wholesale business, and Flipkart Logistics Pvt. Ltd, which runs Ekart (the internal logistics arm that can be used by other e-commerce players).[110][111]
Notable companies in which Flipkart Group owns a controlling stake include: Flipkart has made 22 acquisitions and 27 investments, spending over US$415 million for the acquisitions.[118]
As of 2021, the Flipkart app was available in 8 local Indian languages, Gujarati, Bengali, Odia, Hindi, Telugu, Kannada, Marathi and Tamil.[119]
Funding and revenue
The initial development budget of Flipkart was inr 400000.[121] It later raised funding from venture capital firms Accel India (receiving US$1 million in funding in 2009)[122][123] and Tiger Global (US$10 million in 2010 and US$20 million in June 2011).[124][125][126] On 24 August 2012, Flipkart announced the completion of its 4th round of funding, netting a total of US$150 million from MIH (part of the Naspers Group) and Iconiq Capital. The company announced on 10 July 2013 that it had raised an additional US$200 million from existing investors, including Tiger Global, Naspers,
Regulatory action and lawsuits
In November 2012, the Indian Enforcement Directorate launched an investigation into Flipkart for alleged violations of the foreign direct investment regulations of the Foreign Exchange Management Act of 1999.[150][151] On 30 November 2012, Flipkart's offices were raided by the Enforcement Directorate, with documents and computer hard drives seized by inspectors.[152] In August 2014, the Enforcement Directorate claimed that it had found Flipkart to be in violation of the Foreign Exchange Management Act.[153] The Delhi High Court declared that several e-commerce firms, including Flipkart, had violated foreign investment regulations.[154]
In January 2016, a public interest litigation hearing took place over Flipkart's alleged contravention of foreign investment norms. The court asked the
Consumer affairs
In 2022, a group of scammers was arrested by the Lucknow Police for cheating Flipkart by ordering Apple products and returning packages with bricks instead.[158][159] Such scams have also been reported in the past, where soaps were delivered instead of an iPhone, not only via Flipkart[160] but also via Amazon.[161]
Flipkart Video
Flipkart Video was an India-based OTT (Over the Top) video streaming platform operated by Flipkart.[162][163] It was launched in 2019, and formed content partnerships with Voot, Arre, Viu, TVF, and Pocket Aces' Dice Media.[164][165] In October 2019, it announced its first original series Back Benchers, a quiz show hosted by Bollywood film producer and director Farah Khan, which featured Bollywood actors as students and host Farah as the dean of the figurative school. The show had appearances from Bollywood actors such as Anil Kapoor, Shilpa Shetty,[166]
Criticism
On 13 September 2014, a Flipkart deliveryman allegedly molested a housemaid in Hyderabad.[194] The housemaid's employer sued Flipkart for this incident, citing the need for regulations to make offline delivery services safer.[195]
In 2014, competitors such as Future Group (owner of retail chain Big Bazaar at that time) filed complaints with India's Ministry of Commerce and Industry, alleging that Flipkart's Big Billion Days discounts undercut prices in a manner predatory to other retailers. The ministry stated that it would look into the complaints.[196][197][198]
In April 2015, Flipkart faced criticism for being a launch partner in the
Awards and recognition
- Sachin Bansal was awarded Entrepreneur of the Year, 2012–13 from The Economic Times, a leading Indian economic daily newspaper.[204]
- In September 2015, the two founders entered Forbes India richest Indian by year, debuting in the 86th position with a net worth of US$1.3 billion each.[205]
- In April 2016, Sachin and Binny Bansal were named to Time magazine's annual list of the 100 Most Influential People in the World.[206]
- Flipkart was reported to be at the top in the annual Fairwork India Ratings 2021 - which is a 10-point system that creates a score based on fair pay, conditions, contracts, management, and representation.[207] A total of 11 platforms were evaluated by a consortium of the Centre for IT and Public Policy (CITAPP), International
See also
- E-commerce in India
- Online shopping
External links
References
- Kalyan Krishnamurthy to be Flipkart's new CEO; Sachin Bansal to remain group chairman The Economic Times, 10 January 2017^
- Flipkart layoffs: Company plans to fire 1,100-1,500 employees, says report Business Today, 8 January 2024, retrieved 19 January 2024^
- Pooja Yadav. Flipkart Valuation Declines Over INR 41,000 Cr In Two Years