Flipkart

About the Company

• Flipkart Pvt Ltd. is an Indian electronic commerce company based in Bengaluru, India,
founded in October 2007 by Sachin Bansal and Binny Bansal, who were both alumni of the
Indian Institute of Technology Delhi and formerly worked for Amazon
• In August 2018, U.S.-based retail chain Walmart acquired a 81% controlling stake in Flipkart
for US$16 billion, valuing it at $20 billion
• Flipkart is significantly dominant in the sale of apparel (a position that was bolstered by its
Key Information
Founders - Sachin Bansal & Binny
acquisitions of Myntra and Jabong.com), and was described as being "neck and neck" with
Bansal- Kalyan Krishnamurthy
CEO
Amazon in the sale of electronics and mobile phones
• Flipkart also owns PhonePe, a mobile payments service based on Unified Payments Interface
Major owners - Walmart (81.3%),
(UPI)
Tiger Management (4.70%)
• It has over 150+ million registered users, 120 thousand sellers, 100 million listed products, 21
warehouses and processes over 8 million shipments per month Revenue (FY 19) - US$6.1 billion
Headquarters - Bangalore, India

House Brands
Billion (smartphones) Smartbuy (electronics accessories) MarQ (large appliances)
Perfect Homes (furniture) Citron (home appliances) Dig flip (formerly for electronics)
Major Subsidiaries
Myntra PhonePe Jabong
Ekart Jeeves 2GUD
About the Industry Major Competitors
• Indian e-commerce market is expected to grow to US$ 200 billion by 2026 from US$ 38.5 Amazon
billion in 2018
• Much growth of the industry has been triggered by increasing internet and smartphone Paytm Mall
penetration
• In order to increase the participation of foreign players in the e-commerce field, the Indian Jiomart
Government hiked the limit of foreign direct investment (FDI) in the E-commerce marketplace
model for up to 100 per cent (in B2B models) Snapdeal
• A lot of India’s blue-chip PE firms are looking for opportunities in the sector
ShopClues

Company in News
After life and Covid-19 health insurances, Walmart-owned Nearly four-and-a-half years after Walmart-owned Flipkart shut its
Flipkart is now offering car and two-wheeler insurance policies hyperlocal service Nearby, the company announced another effort to
to customers. The company has partnered with general tap into the market that has players including Dunzo, Swiggy Genie,
insurance firm Bajaj Allianz General Insurance to provide motor etc. Flipkart’s new hyperlocal service called Flipkart Quick will tap
insurance tapping into the vehicle-owners constantly worry new consumers by enabling them to order goods from Flipkart hubs
about their vehicle health and functionality. (May '20) in their location, ensuring quick delivery. (July '20)

Flipkart launches B2B marketplace for kiranas amid JioMart’s
rise.Flipkart also acquired the wholesale business of its parent
company Walmart in India. It announced acquiring 100 per cent
interest in Walmart India that owns and operates 28 Best Price
cash and carry wholesale stores offering close to 5,000 items.
(July '20)
Flipkart strengthens fashion business by acquiring stake in Flying
Machine’s owner Arvind Youth Brands such as US Polo Assn, GAP,
Tommy Hilfiger, Calvin Klein, Arrow etc. The investment by
Flipkart will add to its strengths in online fashion segment as it has
already been leading the segment with the dominance of Myntra
ahead of its rival Amazon. (July '20)

Relevant Questions
• Flipkart as a company engages with multiple kinds of employees, Tech talent, Business experts, delivery executives etc. How does
the company maintain seamlessness in its policies to ensure transparency as well as personalised care for employees?
• What steps is Flipkart taking to reach the next future potential e-commerce customers, whose needs, expectations and requirements
will be very different from who are shopping online now?
• With the growing internet penetration in rural India, what steps is Flipkart taking to tap the growing rural market?
• We are in uncertain times. People are affected mentally, not knowing what the future holds for them. What effective measures and
strategies are taken by Flipkart to respond to this crisis?
• What have been the major challenges for Flipkart during the current pandemic and what strategies were adopted to tackle them?