FLIPKART

We have promise to keep and smiles to go before we sleep

AGENDA
Company Profile
Growth and Expansion/ Milestones
Structure
IT infrastructure
Flipkarts work flow chart
Business Model
Delivery/ Single Day Delivery
Payment Methods
M&A






COMPANY PROFILE
COMPANY PROFILE
Established in 2007 by Binny and Sachin Bansal
Started with selling books
Ventured into consumer electronics in 2010
Since then it is adding mobiles, computers, cameras,
clothing, home and electronic gadgets and appliances
Flyte- Digital Music Store (Digital market content)
(Flytes operations have been discontinued)
COMPANY AT A GLANCE(2012)

Its focus is on hiring.
looking to increase their current
team strength from 13,000 to 25,000
GROWTH AND EXPANSION
MILESTONES
ORGANISATIONAL STRUCTURE
STRUCTURE
IT INFRASTRUCTURE
IT INFRASTRUCTURE
Initially used MySQL Database which lagged during peak hours
MySQL used three servers with 6 HDD/server
It Shifted to Virident FlaskMAX solution
It improved Performance by removing I/O bottleneck, improved
site integrity (up-to date information)
It reduced power usage by data centres
Improved Performance by 50%, Better site stability at peak
hours, improved user experience and reduction of storage
power by half.
WORK FLOW


The scenario discussed above is an ideal scenario where the inventory is
stocked in the Warehouse. Some other possibilities Are:
1. Back to back order fulfilment: In this case the operations download the
orders and ask its runner to go to the vendor immediately and pick up the
required SKUs from the vendor and bring it back to the fulfilment centre to
fulfil the order.

2. Drop shipment: In this case the orders are downloaded and handed
over to the vendor directly to fulfil the orders and ship it to the customers.
The warehouse doesn't have any control over this fulfilment.

3. Made to order: In this case, the orders are first taken from the customer
and then the purchase order is raised to procure the SKUs of that order
from the vendor. Once the SKUs are in the warehouse, the normal
fulfilment cycle (as described above in detail) is followed to process the
order.

BUSINESS MODELS
The portal itself owns and
stocks the products on offer.

INVENTORY MODEL
Seller display their product
Amazon Inc, eBay, Snapdeal

MARKETPLACE
MODEL
FLIPKART MARKETPLACE MODEL
Flipkart India Pvt Ltd, with 3.5 million daily visits and 18 million registered
users moved to marketplace model in February 2013 after selling its
company-owned inventory
It has signed a MoU with the Federation of Indian Micro and Small and
Medium Enterprises (FISME) and the National Centre for Design and
Product Development (NCDPD) to help small businesses sell online
It will host products from 50,000 small enterprises as it scales up its
marketplace model
Flipkart has now more than 3,000 merchants
Disadvantage: The shipping cost is higher because multi-product orders are
fragmented across vendors and shipped separately. And this in turn may lead
to customer dissonance because a customer wont receive their entire order
at one time




FLIPKART DELIVERY
eKart, the logistic arm of Flipkart is a part of WS retail
services
It is Flipkarts in-house vendor and was the sole seller
through Flipkart before it turned into a marketplace.
Currently, eKart is running a pilot programmed with a
few partners and intends to roll out these services in the
next few weeks
SINGLE DAY DELIVERY & SAME DAY DELIVERY
Same day guarantee delivery in 10 cities across India
Place the orders by 12 and it will be delivered by 9pm on the same day.
An additional shipping fee of Rs 200, which has currently been reduced to an
introductory pricing of Rs 140
It will refund the product value (of up to Rs 5,000) back to the users wallet if the
product is not delivered on the same day
This service is however currently available for products sold by WS Retail
Not available for recently launched Large Segment appliances category (TVs) due to
different supply chain
Separate system in supply chain which works like parallel track to standard delivery
with lesser lead time(time between initiation and execution)
Priority for Packing, shipping and delivery
Single day delivery in 27 cities across India
PAYMENT METHODS
PAYMENT
Cash-on-Delivery : Max value 50,000, 60% transactions,
Order on phone: 20% of its orders, 2.5 m downloads
Payment using Visa, MasterCard, Maestro and American Express credit/debit cards,
Internet banking, DD/Cheque
Flipkart's EMI scheme is available for American Express, Citi, HDFC and ICICI credit card
holders only. You may choose to pay in 3,6,9,or 12 month instalments. The minimum order
value >= Rs 4,000.
E-Gift Voucher (eGV)
Wallet: Prepaid credit up to 10K
Two compartments - Flyte and WS Retail
Any new Wallet Top-ups will be limited to purchases in the Flyte category - MP3s and
eBooks
Unused top-up balance, may be used to purchase across all categories till it is
exhausted
Ezetap. It can work through a dongle that can be plugged into smartphones & tablets.
Customers can just swipe their cards when the delivery boy gives them their product


The unique steps for payment used by Flipkart are:
1. Auto redirection to banking site: Flipkart never lands you on CCavenue page
2. Banks Status: It maintains its own real time status if the banks net-banking is
working or not
Payment gateway PayZippy:
It enabled card payments for merchants websites and mobile sites, while its
B2C version allows customers to store their card details and make payments
on partner merchant sites
Flipkart have made a strategic investment in mobile payment
company Ngpay (JiGrahak Mobility Solutions Pvt Ltd), and it is phasing out
Payzippy (Has been discontinued.)
Payzippys clients include babyoye, Bluestone, Makemytrip, Travelyaari,
Caratlane, Yepme, Zansaar, Lenskart and Yepme


M&A
FLIPKART ACQUIRES MYNTRA
Flipkart acquires Indian fashion portal Myntra on May 22
nd
2014.
Financial terms of the deal were not disclosed.
Mint pegs the deal at $330 million while other sources pegs it at Rs. 2000 Cr
Venture capitalist involved are Tiger Global Management, Accel Partners and
Sofina Capital. The deal involved transfer of cash and stock.
Post acquisition, Myntra and Flipkart will account for 50% market share in
Fashion.
All Myntra employees get Esops which will now be converted to Flipkart
stock
Myntra will retain its employees and will function independently.


22
nd
May
2014
$330mn or
Rs 2000 Cr
FLIPKART ACQUIRES LETSBUY.COM
Flipkart acquires Letsbuy.com, countrys second-largest online electronics retailer for
an undisclosed amount on 10
th
February 2014.
People familiar with the matter said it was worth around $20 million or Rs 125 Cr.
Flipkart and Letsbuy have common investorsTiger Global and Accel Partners.
The acquisition is a combination of cash and equity.
The founders of Letsbuy.com, along with more than 350 employees, will function
independently.
Letsbuy can now access Flipkarts technology platform and supply chain capabilities.
10
th

February
2014
$20 million
or Rs 125
Cr
MYNTRA ACQUIRES FITIQUETTE
Myntra acquires San Francisco based Fitiquette.
The financial details of the deal were not disclosed. The company said the acquisition
was part cash, part stock.
Fitquette is a technology solution which is a virtual fitting room. It has developed
pioneering technology for solving the fit/size problem online.
As part of the acquisition, Fitiquette team has joined Myntra with Andy Pandharikar,
CEO & Co-founder of Fitiquette heading Myntra's Innovation Labs in San Francisco
5
th
April
2013
NA
FLIPKART ACQUIRES CHAKPAK.COM
Flipkart acquired Chakpak.com, a Bollywood news site that offers updates, news,
photos and videos.
The exact terms of the deal and financial details have not been disclosed.
Chakpak.com and Flipkart.com are backed by international venture capital firm
Accel Partners.
The acquisition is only of content i.e. the rights to Chakpaks digital catalogue which
includes 40,000 filmographies, 10,000 movies and close to 50,000 ratings.
Flipkart will not be involved with the original site and will not use the brand name.

Somewhe
re in 2011
N/A
FLIPKART ACQUIRES WEREAD
Flipkart acquired weRead.com, the largest social network based book
recommendation and review platform from Lulu(US).
We read has 3 million readers and 60 million books in order to target NRIs.
It involved a cash and stock transaction.
It has enabled Flipkart to suggest the most relevant books to its readers
based on their previous purchase patterns as well as the kind of books they
and their friends like.
22
nd

December
2010
$25 million
SUMMARY
S.No
M&A Date Companies Involved Deal Size
1. Flipkart - Myntra 22
nd
May 2014 Flipkart, Myntra, Tiger Global
Management(VC), Accel
Partners(VC) and Sofina
Capital(VC)
$330 million
2. Flipkart-Letsbuy.com 10
th
February 2013 Flipkart, Letbuy, Tiger
Global(VC) and Accel
Partners(VC)
$20 million
3. Mynta-Fitiquette 5
th
April 2013 Myntra, Fitiquette(San
Francisco)
NA
4. Flipkart Chakpak.com 2011 (June-August) Flipkart, Chakpak.com
Accel Partners(VC)
NA
5. Flipkart-Weread.com 22
nd
December
2011
Flipkart and Lulu(US) $25 million
* VC-> Venture Capitalist
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