“The perfecT enTrepreneur” Success story of “the bansal brothers”-owner of (the online megastore)
Something to know about “The Two Mastermind”Flipkart was founded in 2007 by Sachin Bansal(26) and BinnyBansal(25), both alumni of the Indian Institute of TechnologyDelhi,computer science graduates from the 2005 batch. Sachinworked at Techspan for 6 months and then at AmazonIndia for a year and a half. Binny worked at Sarnoff India for ayear and a half and then at Amazon India for 8 months. Theyquit their jobs in September 2007 to begin our startup journey.Flipkart.com was founded on 5th Sept 2007. The website waslaunched on 15th Oct 2007.From a start-up with an investment of justFlipkart has grown into a online retailgiant in just five years.
About Flipkart.comFlipkart is an Indian e-commerce company headquartered in Bangalore,Karnataka. It was founded by Sachin Bansal and Binny Bansal in 2007. Inits initial years, Flipkart focused on online sales of books. But it later expandedto electronic goods and a variety of other products. Flipkart offers multiplepayment methods like credit card, debit card, net banking, e-gift voucher,and Cash on Delivery. The cash-on-delivery model adopted by Flipkart hasproven to be of great significance since credit card and net banking penetration isvery low in India. Binny Bansal (CEO,Flipkart.com) Sachin Bansal (Co-Founder Flipkart.com)
story....behind Flipkart.comFlipkart.com is a story of the two young graduates from IIT-Delhi who left their jobsin amazon.com (an American multinational E-commerce company) in 2007 with adream to become India’s top retail Outlet In E-commerce Industry.they came upwith an idea to sell books including novels online . Flipkarts timeline shows it was tostart as a price comparisonplatform, but there werent enough e-commerce sites to compare. So, both theBansals, who were colleagues at IITDelhi, and then at Amazon.com, thought, “whynot start an e-commerce site?” That was the genesis of Flipkart. From an initialinvestment of Rs. 4 Lakh this So they started to make a website,although it was abigger task to create a website with 50,000 titles but wouldn’t be impossible forIITians… so finally they created which took about a month and a half to start a basicworking website with 50,000 titles and grown our catalog to over 1 Lakh availabletitles.On 5th september 2007 they launched the companys URL i.e Flipkart.com for thefirst time in just a apartment room.
Why did they choose to be an Entrepreneur…?They saw a good opportunity in the market around e-commerce. Also, regular job was not as challenging. Theexcitement and satisfaction that comes with building somethingof a long lasting value is addictive enough for them to continuethis. They started flipkart.com because they themselves felt theneed for a good online book store. E-commerce sector is oneof the toughest to get into in India. They believe that they canmake a difference here. They wanted to create somethingwhich has a long lasting value and which we can be proud of. Acoording to Sachin (CEO of Flipkart.com) at this point in ourlife we can devote our entire time and energy to flipkart whichis very important for any startup….
An attractive neutral name is what they looked for.Good domain names were hard to get. They werelooking at names that did not just speak of booksalone, but one that could suit any category ofProducts that we may add in future. Also, theywanted to have a catchy name with high recallpotential. Flipkart could in simple terms mean‘Flipping things into your Kart’.
Challenges faced by Flipkart during its launch…One major challenge was to get tie-ups with the major book vendors asthey did not have an off-line book store. They have somehowmanaged to persuade them and now most of the vendors aresupporting us. The second major challenge was to get the approval forthe credit card payment gateway. We did want to use CC Avenue astheir interface is really confusing. So they had to convince Axis Bank forthe payment gateway and that was not easy given the fact that theyare a self-funded startup and they don’t have an offline presence….
the journey of flipkart……after launch..The journey was quite challenging. Getting customers, suppliers, etc to trust has been a challenge.They overcame it by persevering in the face of challenges. They started by identifying people who could trust us initially and slowly built upon our good business relations with them. They had assumed a lot of things, especially around marketing. When those assumptions turned out to be incorrect the business model had to be changed. They have changed directions multiple times and have taken each mistakes a learning experience……!!
What sets Flipkart apart from other ventures …The process involved in online shopping for books has gone throughdrastic changes and is more secure right now. A customer could useour user-friendly web page to place an order, once the order isplaced online – the book is taken off the online inventory. In case ofunavailability – it will be purchased from a supplier. The Book willthen get packed and couriered on the same day. Flipkart is currentlytied up with around 12 courier service providers. Flipkart also useIndian Postal services to reach areas without courier providers.Logistics play an important role in our business. Our keydifferentiators are Availability of variety of goods of variouscategories, online shopping experience on the site and post salesexperience.Apart from this the Cash On Delivery service is also oneof the main reason which keeps it apart from other E-commerceportals…
Growth trajectory of Flipkart......They started off in 2007 by setting up three centersacross India without funding. Six months ago, theyreached number one status. They are also four timesbigger than their nearest competitor. The companystarted off small; today they have grown ten timesover the last one year and aim to touch the mark by March 2013.
Current Position Of Flipkart.com… added to theirFlipkart started with selling books. In 2010, theycatalogue media (including music, movies andgames) andmobile phones and accessories. In 2011, product launchesincluded cameras, computers, pens & office supplies, computeraccessories, home and kitchen appliances, personal care,health care, gaming consoles, audio players and televisions. In2012, product launches includes health & beauty products, Lifestyle products which includes watches, belts, bags & luggage.In November 2011, Flipkart launched a new Electronic Walletfeature that allows shoppers to purchase credit to their Flipkartaccount using credit or debit cards, and can subsequently beutilised to make purchases on the site, as and when required.From June 2012, Flipkart allowed people to buy toys, postersand from October 2012, Flipkart entered into apparel retailing.
Acquisition made By Flipkart.com MIME260, a digital content platform company. Chakpak.com is a Bollywood news site that offers updates, news, photos and videos Letsbuy.com is Indias second largest e-retailer in electronics. Flipkart has bought the company for an estimated US$25 million.
ACHIEVEMENTS MADE BYThy have been featured in Business Today as one of thetop 25 startups of 2009.They were also nominated for. Apart from that we have been featured multiple times instartup news as well as mainstream news. Today, we arerecognized as number one in the industry. As a testimonyto the superior customer experience, the company hasconsistently recorded repeat purchase rates of more than50%. We have also managed to get a registered buyer inevery small town and city. We hope to constantly improveour service standards.
Companies latest statistics…Today, as per Alexa traffic rankings,Flipkart is among theIndian Web sites and has been credited with being Indias largestonline bookseller with over titles on offer. Initiallyfunded by the Bansals themselves with 400,000, Flipkart has raisedfunding from venture capital funds Accel India in 2009 and TigerGlobal (US$10 million in 2010 and US$20 million in June 2011).Flipkart.com, on August 24, 2012 announced the completion of its4th round of $150 million funding from MIH (part of Naspers Group)and ICONIQ Capital.On average, Flipkart sells nearly
Business results of Flipkart.comFlipkarts reported sales as follows:-IN FY 2008–2009- >IN FY 2009–2010- >IN FY 2010–2011- >IN FY 2011–2012- > Is set to cross theAs Internet usage in the country increases andpeople get accustomed to making purchasesonline.Flipkart projects its sales to reach by year 2014. and is aiming atgenerating a revenue of by2015.
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