What is Flipkart? All you need to know about Flipkart
Flipkart is India’s largest online retailer just like Amazon. In 2018 Walmart announced its intention to acquire a stake in the company for $16 billion, making this the largest e-commerce acquisition ever. Flipkart was founded in Bangalore in 2007 by Sachin Bansal and Binny Bansal. Like Amazon, Flipkart began as an online bookstore. Now Flipkart’s website has 10 million page visits a day. Flipkart sells more than 80 different categories of goods.
In 2009 Flipkart founded Ekart and now Ekart is India’s largest logistics company. Ekart delivers 10 million shipments a month for Flipkart, as well as other sellers. The company also owns PhonePe, which helps facilitate electronic payments throughout the country. In addition to these purchases, Flipkart acquired India’s leading online fashion retailers, Myntra and Jabong. Flipkart’s strong position in the Indian market attracted $1.4 billion of investment in 2017. By 2034 the Indian e-commerce market is predicted to surpass the U.S.
Amazon has been taking on Flipkart by offering massive discounts on Indian festivals. But Flipkart has the largest share and remains the e-commerce leader in India. Walmart’s investment has a major boost to the Flipkart’s logistical operations. Walmart’s financial support will also help Flipkart to keep prices low in its battle with Amazon.
Accel and Tiger Global invested in Flipkart when the company was valued at $50 million. Now they have pocketed more than 400 times what they invested. Softbank Vision Fund invested $2.5 billion in 2017. In just over 12 months the company sold its 20% stake for $4 billion. Walmart increased its stake in the $20 billion company from 77 percent to 81.3 percent. Acquisition of Flipkart by a major corporation like Walmart will encourage investors to see India’s e-commerce market as an area of growth. Flipkart may be the first of many start-up success stories emerging from the growing e-commerce space.