Flipkart’s Resilience: A Journey of Unprecedented Growth In E-Commerce

Since its inception in 2007 by Sachin Bansal and Binny Bansal, Flipkart has established itself as a pioneer in the Indian e-commerce sector. The organization began with an emphasis on internet based book deals prior to extending its item classes to incorporate consumer electronics, fashion, home essentials, groceries, and lifestyle products. Throughout the years, Flipkart has gone through critical development, key consolidations, and acquisitions, making it a key player in the Indian market.

In its underlying stage, Flipkart worked from a two-room apartment in Bangalore, with an underlying venture of INR 2 lakh from each founder’s family. The business started out by selling books online, and by 2008, it was getting 100 orders a day. In 2010, Flipkart took an essential action by securing the social book discovery service We Read, making way for its expansion beyond books.

Financial Performance:

Flipkart’s financial journey has seen noteworthy development, with reported sales of ₹56,013 crore (US$7.0 billion) in FY2022-23. Regardless of a negative net gain of ₹−4,834 crore (US$−610 million), Flipkart’s valuation came to $37.6 billion out of 2022. The business has raised a significant amount from investors like Walmart and others in multiple rounds of funding to support its growth and innovation.

Walmart owns a 75% stake in Flipkart, and other investors own the remaining 25%, according to the company’s financial structure. The organization utilizes roughly 22,000 people (barring Myntra) as of January 2024.

Revenue Overview:

Year	Revenue (in USD)
2022	$10 billion (est.)
2021	$8 billion
2020	$6 billion
2019	$4 billion
2018	$3 billion

Investments:

Flipkart has been effectively engaged with both acquiring and making investments in different organizations to improve its financial eco-system. A few key ventures include:

PhonePe (Numerous Investments): Flipkart put resources into PhonePe, a UPI mobile payments startup, and in 2022, when PhonePe moved its base to India, the ownership of Phonepe was isolated. PhonePe’s shareholder employees, both current and former, received approximately $700 million in cash payouts.

Flipkart Marketplace (April 4, 2023): Flipkart Marketplace brought $358.2 million up in a corporate round. The venture was important for its persistent endeavors to reinforce its Marketplace.

Flipkart Wholesale (2020): Flipkart Wholesale launched a digital platform for kiranas and MSMEs, adding to its venture into the business-to-business (B2B)e-commerce section.

Flipkart ventures (2022): In 2022, Flipkart began Flipkart ventures and made an endeavor asset of $100 million to put resources into new businesses chose for Flipkart Jump Ahead, an accelerator program.

Company Name	Date of Investment	Amount	Funding Round	Lead Investor
Flipkart Marketplace	April 4, 2023	$358.2 million	Corporate Round	Yes
Flipkart Marketplace	September 19, 2022	$30 million	Corporate Round	Yes
Hyperface	July 13, 2022	$9 million	Seed Round	–
Shadowfax	July 11, 2022	$9.75 million	Series E	Yes
FinBox	June 20, 2022	$15 million	Series A	–
G.O.A.T Brand Labs	April 20, 2022	$50 million	Convertible Round	–
Flipkart Marketplace	March 31, 2022	$553 million	Corporate Round	Yes
Flipkart Health	March 31, 2022	$143 million	Corporate Round	Yes
Myntra	March 25, 2022	$116 million	Corporate Round	Yes
Ninjacart	December 12, 2021	$145 million	Series D	Yes
G.O.A.T Brand Labs	July 25, 2021	$16.72 million	Series A	Yes
PhonePe	December 14, 2020	$19.29 million	Corporate Round	Yes
Universal Sportsbiz	November 6, 2020	–	Series F	Yes
Aditya Birla Fashion and Retail	October 23, 2020	$192.92 million	Post-IPO Equity	Yes
Ninjacart	October 12, 2020	$30 million	Corporate Round	Yes
Arvind Youth Brands	July 9, 2020	–	Corporate Round	Yes
PhonePe	April 27, 2020	–	Corporate Round	Yes
PhonePe	February 26, 2020	–	Corporate Round	Yes
Ninjacart	December 11, 2019	–	Series C	Yes

 

Funding:

Flipkart’s journey from a startup to a main e-commerce giant included a several rounds of funding. The organization began with an underlying development budget plan of ₹400,000 (US$5,000). Throughout the long term, Flipkart pulled in huge investments, adding to its growth. A few vital achievements in the funding history include:

1. Early Funding Rounds:
   • In 2009, Flipkart got $1 million in funding from Accel India.
   • In 2010, Tiger Global invested $10 million, again an additional $20 million in June 2011.
2. Later Rounds and Major Investments:
   • In August 2012, Flipkart declared a total of $150 million from MIH and ICONIQ Capital.
   • In July 2013, the company raised an additional $200 million from present investors, including Tiger Global, Naspers, Accel Partners, and ICONIQ Capital.
3. Major Infusions:
   • In 2014, Flipkart raised $1 billion in a funding round led by Tiger Global, Accel Partners, Morgan Stanley Investment Management, and Singaporean sovereign wealth fund GIC.
   • The company continued to attract substantial funding, with notable investments from various global investors.
4. Walmart Acquisition:
   • In August 2018, Walmart acquired a 77% controlling stake in Flipkart for $16 billion, valuing Flipkart at around $20 billion. Walmart’s acquisition marked a significant milestone in Flipkart’s history.
5. Recent Funding:
   • In December 2023, Flipkart confirmed a fundraising plan of $1 billion, with Walmart contributing $600 million. The expected valuation ranged from $34 billion to $37 billion.

 

Round/Year	Investor/Investment	Amount (in USD)
2023 (Dec)	Walmart	$600 million
2018 (Acquisition)	Walmart (77% stake)	$16 billion
2014	Various investors	$1 billion
2013 (July)	Existing investors	$200 million
2012 (Aug)	MIH, ICONIQ Capital	$150 million
2011	Tiger Global	$20 million
2010	Tiger Global	$10 million
2009	Accel India	$1 million

Acquisitions:

Flipkart has actively pursued acquisitions to diversify its offerings and strengthen its position in the e-commerce market. Notable acquisitions include:

1. Myntra (2014): Flipkart acquired the online fashion seller Myntra for US$280 million. Myntra continues to operate as a standalone subsidiary, focusing on distinct market segments.
2. Cleartrip (2021): Flipkart acquired the travel booking platform Cleartrip, expanding its presence in the travel business. The acquisition involved a strategic move into the hotel industry, with Flipkart Hotels incorporating Cleartrip’s API.
3. ANS Commerce (2022): ANS Commerce is one of Flipkart’s fresh acquisitions, contributing to the growing of its e-commerce ecosystem. The deal details, including the financial transaction, remain undisclosed.
4. Other Acquisitions: Flipkart has also acquired companies like Ekart, Jabong.com, PhonePe, Mech Mocha, Scapic, and several others to diversify its business portfolio.

Company Acquired	Date of Acquisition	Deal Value
ANS Commerce	April 19, 2022	–
Yaantra	January 13, 2022	$40 million
Sasta Sundar	November 19, 2021	–
Cleartrip	April 15, 2021	–
Scapic	November 17, 2020	–
Mech Mocha	November 3, 2020	–
Walmart India	July 23, 2020	–
Upstream Commerce	September 9, 2018	–
Liv.ai	August 21, 2018	–
F1 Info Solutions & Services	September 26, 2017	–
eBay India	April 10, 2017	–

Growth Strategy of Flipkart:

1. Diversification through Acquisitions:
   • Flipkart’s growth strategy includes diversifying its  portfolio through strategic acquisitions. These acquisitions cover various sectors, including fashion, travel, health, and technology, allowing Flipkart to give a wide range of products and services.
2. Investments in Technology:
   • Flipkart give strong imporatnce to leveraging technology to enhance its services. Investments  like PhonePe, Mech Mocha, and Scapic highlight the focus on technological advancements and innovations.
3. Market Expansion and Globalization:
   • Flipkart, headquarter is in India, initially focused on the Indian market. Then, the acquisition by Walmart and the continuous expansion into different areas indicate a broader market strategy. The company’s planned IPO in the United States in 2023 suggests a global vision & expansion.
4. E-commerce Ecosystem:
   • Flipkart’s goal is to create a comprehensive e-commerce ecosystem by integrating various services. This includes Flipkart Wholesale for B2B transactions, Flipkart Quick for hyperlocal 90-minute delivery, and Flipkart Video to challenge in the content streaming market.
5. Strategic Partnerships:
   • Flipkart has engaged in strategic partnerships, such as the one with Aditya Birla Fashion and Retail, to strengthen its focus in specific segments in the market.
6. Entry into Emerging Technologies:
   • Flipkart’s entry into Non-Fungible Tokens (NFTs) and the creation of Flipverse, a metaverse-based shopping platform, showcase the company’s willingness to explore emerging technologies and trends in global market.
7. Focus on Sustainability and Social Impact:
   • Initiatives like Flipkart Green, aimed at emphasizing on  sustainable products, and the establishment of the Flipkart Foundation to give support entrepreneurship and skill development within underserved and backward communities, reflect a commitment to social responsibility and sustainability(CSR).

Challenges and Controversies:

Flipkart, like any major organisation, has involved in  challenges and controversies. From legal scrutiny regarding foreign direct investment violations to allegations of violating fair trade practices, the company has navigated a complex business environment. Customer affairs, such as scams like product replacements, have also presented challenges for the company.