Flipkart, founded in 2007 by Sachin Bansal & Binny Bansal, has grown to become one of India’s leading e-commerce platforms. Headquartered in Bangalore, this innovative company started with a focus on online book sales before rapidly expanding its product range to include a wide variety of categories such as electronics, fashion, home essentials, groceries, and more. Incorporated as a private limited company in Singapore, Flipkart has played a pivotal role in transforming India’s online retail landscape, offering millions of customers convenient access to a diverse selection of products.
| Company Name | Flipkart |
| Founders | Sachin Bansal Binny Bansal |
| CEO (Current 2024) | Kalyan Krishnamurthi |
| Parent Company | Walmart |
| Founded Year | 2007 |
| Headquarters | Bangalore, Karnataka, India |
| Services | Online shopping |
| Official Website | flipkart.com |
History Of Flipkart
Start-up Phase 2007–2010
Flipkart was founded in October 2007 in Bangalore by Sachin Bansal and Binny Bansal, both alumni of IIT Delhi and former Amazon employees. The company began in a two-bedroom apartment in Koramangala, Bengaluru, with an initial investment of INR 2 lakh from each of their families. Initially, Flipkart was focused solely on selling books, with country-wide shipping available. By 2008, Flipkart was gradually gaining recognition and handling 100 orders per day.
In 2010, Flipkart acquired WeRead, a book-focused social network from Lulu.com, which strengthened its position in the digital book retail space. At that time, very few companies like Landmark and Infibeam were in this market. Flipkart gained a competitive edge through aggressive discounts and excellent customer service, quickly moving towards market leadership. WeRead had a large network of about 3 million readers and a collection of 60 million books. The platform also featured user-generated content, such as book ratings, reviews, and favorites. Despite the acquisition, WeRead maintained its brand identity due to its value to the community and its independent nature.
Growth, Mergers, and Acquisitions 2011–2024
In 2011, Flipkart acquired Mime360.com, a digital distribution business, and the digital content library of the Bollywood portal Chakpak. Following these acquisitions, Flipkart launched Flyte, a DRM-free digital music store, in 2012. However, due to competition from free music streaming sites, Flyte struggled and was shut down in June 2013. Mime360 used encryption technology to securely and quickly distribute music, media, and games through its platform.
In 2012, Flipkart acquired Letsbuy, an online electronics retailer, and in May 2014, it acquired Myntra, an online fashion retailer, for $280 million. Myntra continued to operate as a standalone subsidiary, focusing on its own market segment.
In October 2014, Flipkart held the Big Billion Days event, a multi-day sale exclusive to the Flipkart app. To handle the increased demand, Flipkart strengthened its supply chain and opened more fulfilment centres. The event was a huge success, with a gross merchandise volume of $300 million, driven mainly by fashion sales and high-value mobile phones.
In 2014, Flipkart invested in Ngpay to enhance its mobile payment services, as mobile e-commerce was contributing 50% of its sales. This investment led to the closure of Payzippy, Flipkart’s in-house payment gateway, which was merged with Ngpay. The Ngpay mobile app allowed users to purchase services and products directly from their mobile phones.
Flipkart has introduced an interactive shopping platform called Flipverse, which lets people explore products and shop in a more engaging way, similar to visiting a mall. Flipverse was developed in partnership with eDAO, a firm incubated by Polygon. The platform also allows users to create their own avatars for a personalized shopping experience.
In 2022, the Walmart Foundation and Flipkart Foundation donated INR 2 crore to support flood relief efforts in Assam.
From 2023 onwards, Flipkart launched several new initiatives. They introduced a virtual storefront called ‘Flipkart Student’s Club,’ focused on meeting the academic needs of students. In the same year, they started ‘Flipkart Green,’ a venture offering certified sustainable products for customers who want to lead an eco-friendly lifestyle.
On 28th January 2024, Binny Bansal resigned from the executive team and sold all his shares in Flipkart. Over the past year, Binny, along with investors Excel and Tiger Global Management, sold their entire stakes to Walmart, earning Binny about $1.5 billion. Walmart had initially acquired a 77% stake in Flipkart for $16 billion in May 2018.
In March 2024, Flipkart introduced its UPI payment service, Flipkart UPI, in partnership with Axis Bank. By May 2024, it was reported that Google would invest $350 million in the company.
In the area of Generative AI, Flipkart launched Flippi, an AI-powered shopping assistant that helps customers make buying decisions in English. They also introduced Vibes, a feature that combines video content with online shopping, offering a ‘window-shopping’ experience. Both Flippi and Vibes are part of Flipkart’s enhanced ‘Swipe Screen’ experience.
Gen Z makes up more than 25% of Flipkart Fashion’s customer base. To cater to this group, Flipkart launched Spoyl, an in-app fashion platform, in August 2023. Spoyl is designed specifically for Gen Z and features a unique unisex product navigation system that allows users to browse styles without gender-specific categories.
Flipkart Funding and Revenue
Flipkart initially started with a development budget of ₹400,000 (around $4,800). The company later raised significant funding from venture capital firms. In 2009, Flipkart received $1 million from Accel India, followed by $10 million in 2010 and $20 million in June 2011 from Tiger Global. On 24th August 2012, Flipkart announced it had completed its 4th round of funding, securing a total of $150 million from MIH (part of the Naspers Group) and ICONIQ Capital. Then, on 10th July 2013, Flipkart raised an additional $200 million from existing investors, including Tiger Global, Naspers, Accel Partners, and Iconiq Capital.
Flipkart’s sales figures grew rapidly over the years. In FY 2008–09, the company reported sales of ₹40 million (about $480,000). By FY 2009–10, sales had increased to ₹200 million (around $2.4 million), and in FY 2010–11, they reached ₹750 million (about $9.0 million).
However, Flipkart also faced financial challenges. In FY 2012–13, the company reported a loss of ₹2.81 billion (about $34 million). In July 2013, Flipkart raised $160 million from private equity investors. Later, in October 2013, the company raised an additional $160 million from new investors, including Dragoneer Investment Group, Morgan Stanley Wealth Management, Sofina SA, and Vulcan Inc., with some funding also coming from existing investor Tiger Global.
On 26th May 2014, Flipkart announced it had raised $210 million from Yuri Milner’s DST Global and its existing investors, Tiger Global, Naspers, and Iconiq Capital. By 29th July 2014, Flipkart secured another $1 billion from Tiger Global, Accel Partners, Morgan Stanley Investment Management, and a new investor, Singapore’s sovereign wealth fund GIC.
In December 2014, after receiving $700 million in a new round of funding, Flipkart’s market value was estimated at $11 billion. On 20th December 2014, Flipkart announced it had filed an application with Singapore’s company regulator ACRA to become a public company. This followed the $700 million raised from over 50 Indian investors, adding new names to Flipkart’s board, such as Baillie Gifford, Greenoaks Capital, Steadview Capital, T. Rowe Price Associates, and Qatar Investment Authority. Existing investors DST Global, GIC, ICONIQ Capital, and Tiger Global also participated in this round. As of May 2015, Flipkart had raised an additional $550 million from existing investors, pushing its valuation to $15 billion.
By August 2015, after securing another $700 million, Flipkart had raised a total of $3 billion through 12 rounds of funding from 16 major investors. In April 2017, Flipkart received $1.4 billion in funding from investors including eBay, Microsoft, and Tencent. On 10th August 2017, SoftBank Vision Fund invested another $2.5 billion in Flipkart.
On 19th September 2018, Flipkart Marketplace Singapore invested ₹3,463 crore into Flipkart Internet in two tranches, according to regulatory filings.
In March 2021, it was reported that Flipkart was exploring the possibility of going public by merging with a special-purpose acquisition company (SPAC) to expedite its listing in the United States.
In 2022, Flipkart launched Flipkart Ventures and created a $100 million venture fund to invest in six start-ups selected for Flipkart Leap Ahead, an accelerator program. Each start-up received up to $500,000 in equity investment. After completing the first cohort of Flipkart Leap, the program was divided into two distinct initiatives: Flipkart Leap Ahead (FLA) and Flipkart Leap Innovation Network (FLIN).
In FY 2020–2021, Flipkart reported total revenue of ₹43,357 crore, a 25% increase from the previous year. The company also managed to reduce its losses by 23% to ₹2,445 crore, with total expenses amounting to ₹45,801 crore.
In May 2024, Google invested nearly $350 million in Flipkart.
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Awards and achievements
Sachin Bansal received the Entrepreneur of the Year award for 2012–13 from The Economic Times, one of India’s leading economic newspapers. In September 2015, both Sachin and Binny Bansal made it to Forbes India’s list of the richest Indians for the first time, ranking 86th with a net worth of $1.3 billion each. In April 2016, the Bansals were named in Time magazine’s annual list of the 100 Most Influential People in the World.
In 2021, Flipkart was ranked at the top in the annual Fairwork India Ratings, which evaluates companies based on a 10-point system considering factors like fair pay, working conditions, contracts, management, and worker representation. The evaluation was conducted by a consortium that included the Centre for IT and Public Policy (CITAPP) at International IIIT Bangalore and the global Fairwork network. The methodology involved qualitative interviews with 19-20 workers in Delhi and Bangalore
How Walmart Acquire Flipkart
On 4 May 2018, it was reported that Walmart had won a bidding war against Amazon to acquire a majority stake in Flipkart for $15 billion. A few days later, on 9 May 2018, Walmart officially announced its plan to purchase a 77% controlling stake in Flipkart for $16 billion. After the acquisition, Flipkart co-founder Sachin Bansal left the company, and the remaining management team began reporting to Marc Lore, CEO of Walmart eCommerce US. Walmart’s president, Doug McMillon, mentioned that Walmart planned to help Flipkart with its sourcing and supply chain while also using Flipkart’s expertise to expand Walmart’s global presence. However, Indian traders protested against the deal, viewing it as a threat to local businesses.
In a filing with the U.S. Securities and Exchange Commission on 11 May 2018, Walmart revealed that as part of the deal, Flipkart’s current minority shareholders might require the company to go public after four years, with a valuation not lower than what Walmart paid.
Following Walmart’s announcement, eBay decided to sell its stake in Flipkart back to the company for about $1.1 billion and to relaunch its Indian operations. eBay expressed that there was significant growth potential for e-commerce in India and opportunities for multiple players to succeed in the market. SoftBank Group also sold its entire 20% stake in Flipkart to Walmart, though the terms were not disclosed. Walmart completed its acquisition of a 77% stake in Flipkart on 18 August 2018, also providing $2 billion in equity funding to the company.
On 22 December 2023, Flipkart confirmed that it would raise $600 million from Walmart as part of its overall fundraising plan of $1 billion. The expected valuation of this deal is between $34 billion and $37 billion. After the separation of PhonePe in 2022, Flipkart was last valued at around $33 billion.
FAQs
1)Who is CEO of Flipkart?
Ans:-Kalyan Krishnamurthy is CEO Of Flipkart in 2024
2)How Founded Flipkart?
Ans:- Sachin Bansal & Binny Bansal
3)When Flipkart was started
Ans:- In 2007
4)Who Acquired flipkart
Ans:- Walmart acquired a 77% stake in Flipkart
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