Flipkart
About |
| Flipkart is one of India's largest e-commerce platforms, that serves as a portal for multiple vendors to sell their products online.
The shopping portal, with over 35,000 employees, currently generates revenues of around $1.5 billion.
Although based in India with its headquarters at Bengaluru, Flipkart is also registered in Singapore.
It recently acquired Myntra and Jabong, enabling it to boost its user base.
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Flipkart: How it all started
Beginnings of an e-commerce giant |
| Flipkart was launched nine years ago in India, founded by IIT Delhi alumni Sachin and Binny Bansal.
After kick-starting their career with online shopping platform Amazon.com, they ventured out to create their own portal in India.
With an initial investment of $5,900 to set up their business, Flipkart has witnessed a tremendous growth, garnering nearly $3 billion in investment rounds from around sixteen investors.
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Flipkart's first ever product sold
FACT |
| After its launch in 2007, Flipkart's first ever sold product on its platform was the book 'Leaving Microsoft To Change The World' by John Wood to a customer in Hyderabad. |
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Financial troubles crack into Flipkart's operations
Financial distress |
| Charting massive funding from investors, and launching into an acquisition spree, Flipkart soon roped in the industry's top talents for improving their technology and the platform.
Flipkart also burned a lot of cash in its Big Billion Sale which later faced criticism.
It was facing competition from rival Amazon.com after capital infusions nearing ₹7,000 crore were made by the US-based company in India.
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Flipkart's valuation dips
FACT |
| Earlier last year, after Flipkart witnessed a multi-billion dollar valuation at $15 billion, it soon saw its valuation decrease to $9.39 billion in May 2016. The company also announced reducing its headcount by around 1,000 employees to cut costs. |
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Flipkart's fate to determine India's start-up system
03 Aug 2016 |
| Flipkart's story comes under scrutiny, with investors perusing the company's high cash outflow and market strategies such as its reliance on sales from mobile phones and other business models under question.
After Flipkart's fund raising success, it helped other smaller Indian ventures and start-ups to gain higher valuation and funding.
This was evident by 2015 when over $7 billion was raised by Indian start-ups.
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Flipkart now valued at $6 billion: Morgan Stanley
29 Nov 2016 |
| A mutual fund managed by Morgan Stanley has slashed Flipkart's valuation to $6 billion down from its former glory of being a $15 billion company.
Analysts say this is Flipkart's 9th markdown by investors; T. Rowe Price, Vanguard Group, Fidelity, and Valic have downgraded Flipkart in the past as well.
The move comes amidst talks between Flipkart and Walmart to raise $1 billion.
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Fidelity, Valic slash Flipkart share values
FACT |
| In the 8th successive markdown in value, Fidelity Investments lowered the value of its Flipkart shares by 3.2 percent, while Valic slashed the worth of its investment by a harsh 11.3 percent on 9 November, signalling trouble for Flipkart. |
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Flipkart's revenues boost up from the previous year
03 Jan 2017 |
| Flipkart India Private Ltd. posted a revenue of ₹13,133 crore ($1.93 billion), up 43% from ₹9,226 crore in the previous year, according to regulatory documents from data platform Tofler show.
It also reported a decrease in losses -₹544.6 crore from ₹826.7 crore.
Flipkart said, "Wholesale cash and carry business is a long-term play and your company shall be able to turn profitable with scale."
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