Flipkart is a well-known and driving online business organization globally. I accept practically we all have bought/requested merchandise from this online business monster. During the festive season, Flipkart’s merry deals and offers have been a hang-tight for the Indians. Enormous limits, offers, and cashback which everybody loves to get.
We as a whole know the Flipkart business as a Web-based business solution/company
Flipkart’s Inside Story! Company’s Profile
Flipkart was started in 2007 in Mumbai by Sachin Bansal and Binny Bansal. An Indian company started just 16 years back has achieved a great milestone and has acquired many prominent companies worldwide. Initially, when the company was founded it offered online book sales with shipping throughout India.
Later on, gradually the company expanded its business into electronics, fashion, home consumer products, lifestyle products, groceries, and a lot more.
The company has expanded its business worldwide gradually and is the second-largest e-commerce company in India.
Flipkart’s Business Model Revealed
Flipkart is a multi-series business model company. The source of Flipkart’s earnings is varied. In the multi-series business model, Flipkart generates revenue and operates targeting a wider audience and offering different products and services.
Breakup of Flipkart’s Business Strategy
- Online Marketplace: This is a major revenue-generating activity of Flipkart Business. The company offers millions of products of different uses, with thousands of companies, brands, and stores listing their product on the Flipkart site.
- The users have a varied choice for the product, compared with the others offering the same product, filter according to users’ needs.
- Advertising Revenue: FLipkart allows brands, companies, and vendors to market their products on Flipkart platform. This generates a significant portion of Flipkart’s revenue. It helps brands, and companies to increase customer reach and offer their products to larger audiences.
- Subscription-based Service: Flipkart business model has some subscription plans, like OTT platform offers subscription plans for their platform to enjoy the service, and
- Flipkart has introduced Flipkart Plus where customers can enjoy many offers related to their purchases. It offers discounts, free delivery, early access to sales, and a lot more exciting offers.
- Commission-based revenue: Flipkart charges commissions from the brands, companies, and vendors who offer their products to sell on the platform.
- The commission is charged on the sale price of the product being sold. It varies from product to product. This being another revenue part of Flipkart.
- Flipkart logistics and fulfillment service: Flipkart has a strong network of logistics through which it delivers goods throughout the country. For the delivery, shipping, and storage Flipkart charges a fee which accounts for another revenue portion of the company.
Financials That Was Managed Successfully
Flipkart has reported a revenue of Rs. 511.76 billion in 2022 against a revenue of Rs. 433.57 billion in 2021. The revenue of the company has seen a significant increase in the last two years, depicting the growth potential and strong comeback of the demand post-Covid. The company has raised a total of $14.3 billion in different rounds of fundraising.
The company widened its losses in FY22 with a loss of Rs.4362 crore from a loss of Rs. 2882 crore in FY21. The increase in losses was majorly due to a rise in marketing, legal, and transport expenses.
As of 2024, Flipkart was valued at $35.6 billion down from 37 Billion in year 2022
The company has monthly active users of around 200 million and the company is looking for 300 million active users per month in the next few years.
Flipkart’s Offers and Deals That Attract Millions of Customers, Know How They Do It?
Every festive and end season of the Flipkart Big Billion Days sales make the market crazy for shopping. With huge discounts, offers, and cashback, Flipkart offers great incentives and persuades the audience to buy their favorite product. Every Indian waits for the big billion-dollar sales to order their favorite apparel, necessary goods, luxuries, and other products. The concept of Big Billion Days was introduced in 2014. The company experienced great success in sales with around gross merchandise volume of $300 million on the event.
How Flipkart Functions
Flipkart majorly an E-commerce operator functions in the following way:
Listing of products on the platform: Flipkart allows brands, companies, and vendors to list their offerings on the Flipkart platform to reach a larger audience and increase their sales.
Customer’s order: Once the products are listed on the platform the company, the users, or the customers can browse the millions of products available on the platform and add to the cart their favorite products. Once the customer decides on the products, he can now place the order with Flipkart providing the necessary details to the customer.
Details include
Name, Address, Contact no, mail ID, payment option, and bank account details.
Delivery: Once the order is confirmed the Flipkart shipping and dispatch team starts the packaging and delivery of the product. Users can track the live status of their product with the expected date of delivery.
Payment: In case the customer has selected an online payment option, customers are required to pay before the product gets confirmed. In case the customer has opted for COD (Cash on Delivery), the customer can pay at the time of delivery.
Customer Support: If a customer is not satisfied with the product, he can return, or replace the product within the time limit. Customers can connect with the Support team to resolve the issue. Customers can ask for a refund and payment related to the Flipkart 24*7 customer support service.
Acquisition by Flipkart
Flipkart has acquired many prominent companies, and startups since its inception.
In 2014 Flipkart acquired a 100% stake in the top fashion and apparel online platform Myntra for $300 million.
In 2015, the company acquired a logistics and related service company Ekart.
In the year 2021, Flipkart acquired a stake in two companies Cleartrip (a Travel booking company) and Sastasundar (a Healthcare company).
Till date, the company has made 35 investments with an overall investment of $420 million.
Walmart Investment
Year 2018 was a turning year for the company, Flipkart. Walmart, an American Multinational retail corporation, has won the bid to acquire a majority stake in Flipkart against Amazon’s bid. Flipkart was acquired by Walmart for $16 billion with 77% stake in the company.
Conclusion
Flipkart has brought an online shopping buzz in the Indian market. With the introduction of Big Billion Days it has captured a large volume and numbers of market online shopping share. The company has offered a great marketplace mainly for Indians to enjoy online shopping with an easy and friendly interface. The company has expanded its business model through diversified revenue sources. The company is showing positive numbers and looking to bring the best for the customers with innovation and service.
