Case Study Of Flipkart

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Company Introduction:
Flipkart an e-commerce website has grown to be India’s most valuable e-commerce company. A company that started with a mere investment of Rs.4,00,000 has now earned it self a valuation of more than USD $1billion. Flipkart was founded by Mr. Sachin Bansal and Binny Bansal, alumni of Indian Institute of Technology Delhi, in October 2007 who quit working for Amazon and started their own journey into the e-commerce field by starting India’s very online retail website. Both Sachin & Binny were techies and found their jobs unsatisfactory, and being tech experts they didn’t want to deal in marketing and sales. So they decided to create e-commerce website engine comparators and found that there weren’t many websites that could provide everything to the Indian customer and that is how they found their opening in the e-commerce platform market. They wanted to name their website something which indicated …show more content…

Flipkart plans to acquire 8 - 10 % in Biyani’s Future Lifestyle. Flipkart’s move to build synergies with Future Lifestyle Fashion could be for the same reasons why Amazon invested in Shoppers Stop. Flipkart might be able to lock FLF’s 20-odd fashion brands exclusively on its platform and use recall of outlets such as Central, Brand Factory and Planet Sports to win consumer trust.
If the deal does go through, it could be a big boost for Flipkart’s fashion-focused subsidiary Myntra, which is aiming to become profitable at an EBITDA level by March next year (2018). At a current market cap of around $1 billion, Flipkart could end up paying over $100 million to acquire 10 per cent stake in Future Lifestyle Fashions.Typically, in such deals, Flipkart could end up paying a premium for each share, with reports stating that Biyani could demand as much as a 25 per cent premium from

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