Recap Objectives

We discussed briefly the To analyse the market

background of the online
structure
retail industry
We named the major
To assess the practices of
players in the industry in the individuals regarding
the last presentation. their own structure
We discussed the market To gain a better
size, industry share and understanding of the
the future trends. workings of the market.
 The Market
Oligopolistic Market Market Share
Few dominant players
High barriers to entry Flipkart
High selling costs 20% Amazon
HH Index = 2490.85 38% Snapdeal
6%
Paytm
C4 = 80 7%
Others
No public listings yet 30%
No disclosure of
accounting books Source: Yourstory
 STRUCTURE
Flipkart employs 4500+ people.
It receives about 4 million visitors/month.
Ships out as many as 45,000 items a day,
clocking daily sales of approximately Rs 2.5 cr.
Flipkart is now investing in expanding its network
of distribution centers, warehouses, procurement
operations which is as of now in only 8 cities in the
country, so as to reach more cities.
 VERTICAL INTEGRATION
The company is even setting up its own delivery network which is now in 37
cities, by which, the company can save up costs associated to the outsourced
shipping & logistic function.For example, Ekart Logistics.

Company deployed the analytics software using its own in-house IT team and
did not rely on external consultants.

It allowed employees to be data analysts (empowering them) and not merely

data collectors which allowed the company to realize major gains.

Their Qlikview analytic tool has allowed the company to optimize the stock
levels and lower costs associated with the excess stock. And inventory
utilization improved by 5%.
 BUSINESS MODELS
Flipkart started with the strategy of "Direct Online Retail".
Flipkart stocked only popular, frequent moving products and
the more obscure products were delivered directly through the
distributors.
Hence, Flipkart has now shifted to "Marketplace Model" which
allows the third party merchants to sell goods to consumers
through the Flipkart website and app.
 BUSINESS MODEL
Mix of Marketplace and Direct
Selling Model
Cloudtail India Pvt. Ltd to bypass FDI
regulations
Joint Venture between Amazon India
and Catamaran Ventures
 VERTICAL INTEGRATION
Easy Ship
Fulfilled by Amazon
Pay With Amazon
Seller Flex

ACQUISITIONS
Emvantage Digital Payments company
Blue Dart (75% stake) Logistics
 Structure
Percentage Holding
Operates on a Softbank 33%
marketplace model
Kalaari 14%
Third party vendors
Nexus 12%
Third party delivery
eBay 9%
members such as Blue
Dart, Delhivery Kunal Bahl 5%
Been involved in Bessemer 4%
several high profile Rohit Bansal 3%
acquisitions Others 20%
Journey Major Acquisitions
2010 2012
2010 SD is Grabbon to eSportsbuy for
launched expand to sports goods e-
Blore tailer

2015
2015 Bought 2014
Freecharge to
out Acquired
expand its user
Exclusively.com Wishpicker
base massively
 Introduction
Founded by Vijay Shekhar Sharma in 2010 and owned
by One97 Communications.
Started out as a prepaid mobile recharge website,
bill payments and e-commerce were integrated later.
Current valuation : $3.4 billion.
Major investors include Alibaba(Ant Financial), SAIF
partners etc.
Operates through desktop site, mobile site and
mobile application.
 Stakeholders
Stake in Paytm

Alibaba(Ant Financial)
SAIF partners
20%
29% Vijay Shekhar
Sharma
Others(SAP Ventures,
30% Reliance capital etc.)
21%
 Investments and Acquisitions
Date Name of the company Amount invested Acquisition or
Investment
Jan,
Shifu $8M Acquisition
2016

Nov,
JUGNOO $5.5M /Series B(Lead) Investment
2015

Sep,
LogiNext Solutions $10M /Series A Investment
2015

Jul,
Little $50M /Venture(Lead) Investment
2015

Jun,
JUGNOO $5M /Series A Investment
2015
THANK YOU