Flipkart is one of India’s first homegrown E-commerce companies, started its journey as a bookstore in 2007. The company’s story of success has been a long and inspiring journey. Starting with the founders fumbling around with the concept of selling books through an online portal, Flipkart soon grew into a behemoth that revolutionized the Indian e-commerce industry. Flipkart has now become a household name in India and a leading e-commerce platform in the world. The story of Flipkart’s success is not only inspiring but also holds many valuable lessons for new startups. From building a strong team to adapting to changing market trends, there are several key takeaways that can help entrepreneurs in their startup journey. In this blog, we will explore the top 10 lessons that new startups can learn from Flipkart’s incredible journey to the top.
The journey of Flipkart can be seen as a blueprint of how Indian startups can grow to become highly successful. This blog discusses the various lessons that new startups can learn from the success story of Flipkart.
Story of Flipkart
Flipkart is an e-commerce company based in India that was founded in 2007 by Sachin Bansal and Binny Bansal, who were former employees of Amazon. The company started as an online bookstore but soon expanded its product range to include electronics, fashion, home appliances, and more. In 2014, Flipkart acquired Myntra, an online fashion retailer, strengthening its position in the e-commerce market. Over the years, the company has faced several challenges such as intense competition from Amazon and changing regulations but has managed to sustain and grow its business. In 2018, Walmart acquired a majority stake in Flipkart, valuing the company at $21 billion, making it one of the largest e-commerce deals in history. Today, Flipkart is one of the leading e-commerce platforms in India with millions of customers and numerous sellers.
The Wow factors
Over the years, Flopkart has achieved several milestones and set numerous records in the Indian e-commerce industry. Here are some of its major achievements:
1. Acquisition by Walmart: In May 2018, Walmart acquired a 77% stake in Flipkart for $16 billion, making it the largest acquisition deal in India’s e-commerce industry.
2. Gross Merchandise Value: In 2020, Flipkart reported a gross merchandise value (GMV) of $10.3 billion, making it one of the largest e-commerce companies in India.
3. User base: Flipkart boasts of having more than 300 million registered users in India.
4. Record Sales: In 2021, Flipkart recorded its highest-ever single-day sale on its platform, with over 30 million unique visitors on its Big Billion Day sale.
5. Market share: Flipkart has an e-commerce market share of around 30%, making it the leader in the Indian e-commerce industry.
6. Funding: Flipkart has raised more than $7 billion in funding to date, making it one of the most well-funded e-commerce companies globally.
7. Successful Launch of its own brands: Flipkart successfully launched and scaled its own private labels such as MarQ, Perfect Homes, and Billion, all of which have become huge successes in their respective categories.
These achievements have helped Flipkart cement its position in the Indian e-commerce industry and become one of the most successful startups in the country.
10 Lessons for new Startups from Flipkart
Lesson 1: Start Small
Flipkart started as a modest venture selling books online. The founders, Sachin Bansal and Binny Bansal, started the company in 2007 with only INR 400,000 ($5,400) from their savings. The initial idea was to offer books to Indian readers who didn’t have easy access to a wide variety of books.
Starting small has its advantages. It allows new startups to test their ideas with a smaller audience and refine their business model before aiming for scale. By starting small, a business can manage its resources better and minimize the risks involved in scaling too quickly.
Lesson 2: Identify a Gap in the Market
One of the key factors that led to Flipkart’s success was its ability to identify a gap in the Indian e-commerce market. At the time, there was no reliable platform for Indian consumers to purchase products online. Flipkart identified this gap and capitalized on it by offering a strong value proposition to its customers.
As a new startup, identifying a gap in the market is essential. It allows you to create a unique selling proposition that sets you apart from your competitors.
Lesson 3: Adopt New Technologies
Flipkart was quick to adopt new technologies that enabled it to offer a better customer experience. The company was one of the first e-commerce companies in India to offer a mobile app and a mobile website.
New startups must embrace new technologies if they want to stay competitive. Adopting new technologies can help businesses streamline their operations and offer a better customer experience.
Lesson 4: Create a Strong Team
Flipkart was built on the strong foundation of its founding team. Sachin Bansal and Binny Bansal were childhood friends who had studied together at the Indian Institute of Technology, Delhi (IIT-D). The two had complementary skills that allowed them to build a strong business together.
A strong team is essential for any new startup. Founders must choose team members who share their values and vision for the company.
Lesson 5: Focus on Customer Experience
Flipkart’s customer-centric approach was one of the key factors in its success. From its easy-to-use website to its reliable delivery service, Flipkart’s focus on customer experience helped it build a loyal customer base.
As a new startup, it’s essential to focus on creating a positive customer experience. This can help businesses build a loyal customer base that will drive growth and sustainability.
Lesson 6: Embrace Innovation
Flipkart’s innovative approach to e-commerce helped it stay ahead of its competitors. The company was quick to introduce new features and services that improved the customer experience.
Innovation is essential for any new startup that wants to stay ahead of its competitors. By embracing innovation, businesses can stay relevant and adapt to changing market conditions.
Lesson 7: Solve Real Problems
Flipkart’s success can be attributed to its ability to solve real problems for Indian consumers. By offering a reliable platform for purchasing products online, Flipkart catered to a real need in the market.
New startups must focus on solving real problems for their customers. By understanding their customers’ pain points, businesses can create products and services that have a real impact.
Lesson 8: Build Strong Partnerships
Flipkart’s success can also be attributed to its strong partnerships with vendors and logistics companies. These partnerships were key to the company’s ability to offer a seamless customer experience.
Building strong partnerships is essential for new startups. By partnering with other businesses, startups can leverage their expertise and resources to achieve their goals.
Lesson 9: Be Patient
Flipkart’s success was not achieved overnight. It took the company several years to establish itself as a trusted e-commerce platform in India.
As a new startup, it’s essential to be patient and focus on the long-term. Growth and success take time, and businesses must be prepared to weather the ups and downs that come with scaling a business.
Lesson 10: Believe in Yourself
One of the most critical factors in Flipkart’s success was the self-belief of its founders. Sachin Bansal and Binny Bansal believed in their idea when few others did. This belief helped them overcome the many obstacles they faced while growing Flipkart.
As a new startup, self-belief is essential. Founders must be confident in their vision and their ability to execute it. This self-belief can help businesses overcome the challenges that come with starting and scaling a business.
The major takeaway from Flipkart’s success story
The major takeaway from Flipkart’s success story is that innovation, customer-centricity, adaptability, and strong leadership can help a startup grow into a successful and established e-commerce giant even in a highly competitive market. Flipkart’s focus on improving the customer experience, adopting new technologies, and constantly expanding its product offerings has helped it to stay ahead of the competition and maintain its leadership position in the Indian e-commerce market. Additionally, Flipkart’s early-mover advantage, strategic partnerships, and well-planned acquisitions have also contributed significantly to its success.
Sum-up
Flipkart’s story of success is a testament to the potential of Indian startups. The company’s focus on customer experience, innovation, and partnerships helped it establish itself as a leader in India’s e-commerce industry.
New startups can learn valuable lessons from Flipkart’s success story. By starting small, identifying gaps in the market, adopting new technologies, creating a strong team, focusing on customer experience, embracing innovation, solving real problems, building strong partnerships, being patient, and believing in themselves, new startups can follow Flipkart’s blueprint and achieve remarkable success.