Indian-born e-commerce giant Flipkart has achieved yet another milestone. Flipkart has recently crossed the 100-million registered users mark according to PTI news reports. It is interesting to note that this e- commerce giant based in Bangalore has doubled its customer base by 25 percent in the last six months. According to deloite.com, as far as transaction values go, the Indian online retail market has a dream run in recent years. However, it also mentions about significant challenges still facing the online retail sector in India. According to them, these challenges are expected to be the key driving force behind their consolidation in the market.
On the recent success of Flipkart.com, the company’s co-founder and CEO Binny Bansal said, “This is a small step in our efforts to build a platform that provides quality products affordable and accessible to millions of Indians shopping online. This milestone has further energized us to ramp-up our efforts and build a world-class shopping destination.”
This e-commerce giant was founded by Sachin and Binny Bansal in 2007. This company is registered in Singapore and has its headquarters in India. Initially starting with an online bookstore, the company now sells over 20 million products across 70+ categories. Going by the reports of 2015 financial year results this e-commerce giant had suffered a loss of 2000 crores.
Tiger Global, Accel Partners, Morgan Stanley and T Rowe are some of the notable investors which have invested in Flipkart.com. This e-commerce giant has raised over $3 billion in funding and has taken over companies like Myntra , PhonePe and LetsBuy. According to a recent Bank of America ‘Merrill Lynch’ report published in September this year, it is the market leader with 43 percent market share. This report has also forecasted that this figure could well rise up to 44 percent in 2019.
On the other hand, a Morgan Stanley report which was released in February 2016 says that Flipkart is the largest e-commerce company in India with 45 percent market share
Other international e-commerce giants like Amazon and Alibaba are also trying to give some stiff competition to Flipkart by making significant investments in India.
In this context, it should also be noted that the image of India as an attractive destination for foreign investment is reflected from the huge foreign investments flowing into companies like Flipkart, Snapdeal and Paytm.