So, America's top retailer Walmart has bought a 77% stake in Flipkart deal for $16 billion. The deal values Flipkart at over $20 billion. Sachin Bansal, the founder of Flipkart, is expected to exit the company, while Binny Bansal, the other founder, and CEO, Kalyan Krishnamurthy, are expected to stay.
On the big billion dollar day for Flipkart's founders, here are the top must-know things about India's e-com giant, which is set effectively to be Walmart in all but name soon:
Flipkart employees seen celebrating the day they hit 5000 orders in a single day, many years ago.
- Founded in 2007 by Sachin Bansal and Binny Bansal (unrelated with each other) in Bangalore. The Bansals met in 2005 at IIT-Delhi and were subsequently employed by Amazon.
- At first, Flipkart sold books, but expanded to sell games, music CDs, movies, electronics and smartphones. The first book that Flipkart sold was John Wood’s Leaving Microsoft to Change the World.
- The first office in Bengaluru came around 2008, while subsequent offices in Delhi and Mumbai were opened in 2009. In 2011, Flipkart domiciled to Singapore, for better funding.
Management & HR Principles:
- As a first step, Flipkart gives a list of books to every new senior-level recruit, which he or she must read before coming on board. These range in subjects such as management, thinking out-of-the-box or consumer internet, depending on the role the entrant would be taking up.
- During the first few days, every top-level recruit is made to shadow co-founders Sachin Bansal (chief executive officer) and Binny Bansal (chief operations officer) for a couple of days, to closely understand their vision and working.
- To further help the new leader understand its functioning and ethics, a 'buddy' is assigned. This could be an existing employee of the same level or someone senior.
- Its a numbers game for India's first billion-dollar e-commerce company. 8 million products across 80+ categories, 100 million registered users, 100,000 sellers, 21 warehouses, and 10 million daily page visits.
- Consolidated revenue jumped 29% to Rs19,855 crore in fiscal 2017. But, Flipkart Group’s consolidated loss attributable to owners of the company in fiscal 2017 widened to Rs8,770 crore, from Rs5,216 crore a year earlier.
- Binny Bansal took over as the chief executive officer (CEO) and Sachin Bansal became executive chairman in 2016.
- Around 2017, Kalyan Krishnamurthy, previously an executive in Tiger Global, an investor, took over as Flipkart CEO. Binny Bansal became CEO of the whole group, which includes fashion portals Myntra-Jabong, payments unit PhonePe and logistics firm Ekart.
Notable Mergers & Acquisitions:
- Online apparel retailer Myntra at about $300 million (rumoured) in 2014, and Jabong for $70 million in 2016.
- Flipkart bought payment startup PhonePe in 2016.
- Flipkart offered to buy rival Snapdeal but the deal didn't click.
- eBay has an equity stake in Flipkart. A $500 million transaction transferred eBay.in business to Flipkart in 2017.
- According to Reuters, Japan’s SoftBank Group Corp. owned a fifth of Flipkart through its Vision Fund.
- New York-based hedge fund Tiger Global and US private-equity firm Accel Partners are also expected to sell their stakes to Walmart.
- Naspers Ltd, China’s Tencent Holdings Ltd, eBay Inc, and Microsoft Corp. had invested $1.4 billion in 2017.