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<ul><li>Thousands lost their jobs amid a deepening funding winter in 2022 amid massive layoffs by the tech companies.</li><li>According to a PwC <keyword id="3658" type="General" weightage="100" keywordseo="india" source="Orion">India</keyword> report, startup funding in India hit a two-year low at $2.7 billion in the third quarter of 2022.</li><li>Seed stage rounds also experienced a contraction and dropped by 38 per cent as compared to the previous year.</li></ul> Indian startups, which saw a massive 35 per cent drop in funding in 2022 -- from $37.2 billion in 2021 to $24.7 billion (till November) -- are bracing themselves for a deepening funding winter in 2023 as recession fears loom. Although some startups, like fintech platform <keyword id="6557529" type="General" weightage="50" keywordseo="kreditbee" source="Orion">KreditBee</keyword> ($200 million), Foodtech platform HealthKart ($135 million) and HRtech software-as-a-service (SaaS) platform BetterPlace ($40 million), raised decent funds in December last year and in the beginning of January, the scene overall is grim as VC money has squeezed. Thousands lost their jobs amid a deepening funding winter in 2022 amid massive layoffs by the tech companies, which still continues. According to a PwC India report, startup funding in India hit a two-year low at $2.7 billion in the third quarter of 2022. In 2022, the significant drop in funding was attributed to a decline in late-stage investments, which fell by 45 per cent from $29.3 billion in January-November 2021 to $16.1 billion for the same period this year, according to data provided by <keyword id="2779670" type="General" weightage="80" keywordseo="tracxn" source="Orion">Tracxn</keyword>, a leading global market intelligence platform. Seed stage rounds also experienced a contraction and dropped by 38 per cent as compared to the previous year. The report said that 22 startups entered the unicorn club in 2022, as compared to 46 in the previous year.The number of big ticket ($100 million and above) funding rounds dropped by 35 per cent to 55 as compared to 85 in the reported period. The number of funding rounds saw a drop of 30 per cent, from 2,647 last year to 1,841 this year, the report said. "The funding winter, which began in Q4 of 2021, will persist in 2023 as well. In order to survive the drought, startups are taking unit economics more seriously, which has been illustrated through the series of mass layoffs that have occurred this year," said <keyword id="520013" type="General" weightage="80" keywordseo="neha-singh" source="Orion">Neha Singh</keyword>, Co-Founder, Tracxn. "Although we are currently experiencing a slump, the situation is prompting startups to establish clearer and more sustainable paths to growth, as investors' evaluation metrics begin to emphasise good profitability over growth at all costs," Singh had said in a statement. The startup ecosystem's funding winter could last another 12 to 18 months and the industry may face "a lot of turmoil and volatility", Flipkart CEO <keyword id="6379357" type="General" weightage="80" keywordseo="kalyan-krishnamurthy" source="Orion">Kalyan Krishnamurthy</keyword> warned recently. According to <keyword id="12046361" type="General" weightage="80" keywordseo="shrijay-sheth" source="Orion">Shrijay Sheth</keyword>, Founder, Legalwiz.in, 2023 will continue to be the year of sustenance for most, and funders will continue to remain more cautious. "Both valuation multipliers and funding opportunities will go more conservative. Startups must build better units economics as opposed to expensive acquisitions driven growth channels. Geo-political issues, Global supply chain crisis and other macro issues are expected to prevail," he said. However, this also needs to be seen as a year where resilient, innovative and problem-solving entrepreneurs shall get an opportunity to stand out from the crowd. "As the macro environment gets tougher, we can expect some excellent business models to outshine the rest with high levels of innovation and frugality. Also, mostly the serious funding houses will prevail while we will see visitors in the VC world take a break," <keyword id="262579" type="General" weightage="80" keywordseo="sheth" source="Orion">Sheth</keyword> noted. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/science/health/news/there-is-a-link-between-drinking-sugary-sodas-and-hair-loss-says-beijing-based-study/slidelist/96796018.cms">There is a link between drinking sugary sodas and hair loss, says Beijing-based study</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/chaman-metallics-first-sme-ipo-of-2023-subscribed-197x/articleshow/96795916.cms">Chaman Metallics, first SME IPO of 2023, subscribed 197x</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/careers/news/60-of-blue-and-grey-collar-jobs-go-to-freshers-with-tech-skills-billion-careers-report/articleshow/96795198.cms">60% of blue and grey collar jobs go to freshers with tech skills: Billion Careers report</a>

India's startup economy stares at deepening funding winter in 2023

<ul><li>As Walmart-owned <keyword id="6354742" type="COMPANY" weightage="20" keywordseo="Flipkart">Flipkart</keyword> moves towards a possibly $10 billion initial public offering (IPO), it seems to be shedding flab with a nearly $300 million write off in Jabong.</li><li>Flipkart India CEO Kalyan Krishnamurthy described 2020 as the year when the company turned ‘financially prudent’, without adding any details.</li><li>Judith McKenna, president and chief executive of Walmart International, said that even after Flipkart being shut for 53 days in 2020 due to the COVID-19 pandemic, the e-commerce business closed the year stronger than it started.</li><li>For Flipkart, in 2021, the focus will be on grocery and fashion bringing loyal customers through its subscription programme and investing in technology and infrastructure.</li></ul>Digging inside Walmart's earnings has revealed a lot about what's happening at Flipkart. As the India-born e-commerce subsidiary moves towards a <a href="https://www.livemint.com/market/ipo/walmart-readies-for-10-bn-flipkart-ipo-11607300769974.html">possibly</a> $10 billion initial public offering (IPO), it seems to be shedding flab with a nearly $300 million write off in one of its units. As Walmart boss Doug Mcmillon wants to “step on the gas” in India, Flipkart chief executive officer (CEO) Kalyan Krishnamurthy has decided to focus on areas like grocery and fashion as well as investments in technology and infrastructure. <div type="Youtube" id="zUinE3RR_nU" title="Flipkart Gets Leaner With A $300 Million Jabong Write-Off" thumbUrl="https://i.ytimg.com/vi/zUinE3RR_nU/mqdefault.jpg"></div> Krishnamurthy described 2020 as the year when Flipkart turned ‘financially prudent’. While he didn’t add any details, inside Walmart’s earnings report, there were “business restructuring charges” including $293 million non-cash impairment for the <a href="http://jabong.com/">Jabong.com</a> trade name. Business Insider reached out to Flipkart for more inputs but the spokesperson said that they have nothing more to add. <keyword id="1484171" type="COMPANY" weightage="20" keywordseo="jabong-com">Jabong.com</keyword> was a fashion e-commerce entity that Flipkart had acquired through Myntra in 2016 and eventually absorbed it. <cmsannotation type="cmsannotation" annotationid="A step towards IPO?" comment="subhead" text="A step towards IPO?">A step towards IPO?</cmsannotation> Such restructurings are common when a company is planning to go public. It makes the IPO more attractive. Walmart is reportedly preparing Flipkart for a big market debut possibly in the US – a $10 billion initial public offering (IPO). The listing is expected to boost Flipkart’s valuation to $40 billion from the current $24.9 billion. While the company hasn’t given a timeline or details for the market offering, <a href="https://www.livemint.com/market/ipo/walmart-readies-for-10-bn-flipkart-ipo-11607300769974.html">reports</a> say that it could be in 2021 with Walmart divesting a 25% stake in the company. <div type="image" title="Flipkart valuation history - December 2020" msid="81105071" hostid="261" caption="&amp;lt;p&amp;gt;Flipkart valuation history until December 2020&amp;lt;/p&amp;gt;"></div> <cmsannotation type="cmsannotation" annotationid="Shedding past baggage is one thing, focussing on the future is another" comment="subhead" text="Shedding past baggage is one thing, focussing on the future is another">Shedding past baggage is one thing, focussing on the future is another</cmsannotation> Walmart is clearly very bullish on Flipkart. Both Walmart CEO Mcmillion and Judith McKenna, president and chief executive officer (CEO) of Walmart International were all praises for the team in India during the earnings call. McKenna said that Flipkart has doubled its gross merchandising value (GMV) despite being shut for 53 days due to the COVID-19 pandemic. “The e-commerce business closed the year stronger than it started,” she added. GMV is the total value of merchandise sold on a platform. When asked about the focus for 2021, Krishnamurthy lined up grocery, fashion, and onboarding loyal customers through their subscription programme. In fashion, Flipkart has already made some moves, but the attractive grocery segment is going to be a challenge. Investments made by Flipkart in the apparel industry recently <table style="border-width: initial; border-style: none; width: 468pt; table-layout: fixed;"></colgroup></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Company </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Investment by Flipkart </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">USPL (Universal Sportsbiz Pvt Ltd) </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Undisclosed </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Aditya Birla Fashion Retail Limited </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹1,500 crore </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Arvind Fashions </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹260 crore </td></tr></tbody></table> In grocery, Flipkart has betting big on itself through Flipkart SuperMart and an investment in <a href="https://www.businessinsider.in/business/ecommerce/news/walmart-and-flipkart-invest-in-ninjacart-again-to-bump-up-its-grocery-offerings-ahead-of-the-festive-season/articleshow/78617012.cms">Ninjacart.</a> “We are going to partner with the roughly million kirana stores in our ecosystem,” he said. Kirana is the Hindi word for mom-n-pop stores in India and is the latest buzzword in the race for online grocery retail where some of the richest and mightiest business houses in the country are making big investments. JioMart, which is Reliance Retail’s e-commerce debut, owned by India’s richest man Mukesh Ambani, is targeting 30 million merchants and he is backed by Facebook and WhatsApp for this project. The $100 billion Tata Group, one of India’s oldest and largest conglomerates, has reportedly closed a deal to acquire BigBasket, one of the early birds in India’s online grocery market. Meanwhile, Flipkart is also betting big on adtech (Advertising technology). Krishnamurthy said that Flipkart’s advertising platform is currently one of the top five in India today. Flipkart is strengthening its advertising and monetisation portfolio and has announced the launch of a custom built demand-side platform (DSP). It recently partnered with <a href="https://www.businessinsider.in/advertising/ad-tech/news/flipkart-launches-commerce-focused-self-serve-demand-side-platform/articleshow/80919844.cms">MediaMath</a> to launch its demand-side platform. SEE ALSO: <a href="https://www.businessinsider.in/business/ecommerce/news/amazon-denies-dodging-indian-regulations-but-the-government-is-already-investigating-and-rivals-want-a-ban-on-jeff-bezos-company/articleshow/81088953.cms">Amazon denies dodging Indian regulations⁠ but the government is already investigating and rivals want a ban on Jeff Bezos’ company</a> <a href="https://www.businessinsider.in/entertainment/news/pewdiepies-lyrics-targeting-cocomelon-and-jk-rowling-that-may-have-gotten-youtube-angry-enough-to-pull-the-video-down/articleshow/81102941.cms">PewDiePie's lyrics targeting CoComelon and JK Rowling may have gotten YouTube angry enough to pull the video down</a>

Flipkart gets leaner with a $300 million Jabong write-off as CEO Kalyan Krishnamurthy lists out the priorities for 2021

Walmart-owned Flipkart will undertake a buyback employee <keyword id="6368159" type="UNKNOWN" weightage="20" keywordseo="stock">stock</keyword> options worth about Rs 600 crore, according to sources. Earlier in the day, Flipkart announced raising $3.6 billion (about Rs 26,805.6 crore) in funding from a clutch of investors that valued the e-commerce major at $37.6 billion (about Rs 2.79 lakh crore). In an e-mail to employees, Flipkart group chief executive officer <keyword id="6379357" type="PERSON" weightage="20" keywordseo="kalyan-krishnamurthy">Kalyan Krishnamurthy</keyword> lauded the critical role played by the staff in reaching this milestone. "It has always been our endeavour to provide our employees with an opportunity to liquidate their vested options regularly. This year, we are pleased to announce a buyback of 5 per cent of the past three years' vested options. With this landmark event for us, I am happy to share that we are offering our employees an additional buyback of 5 per cent of all vested options as we stay committed to wealth creation for you," he said. While the e-mail did not provide additional details, sources said the employee stock options buyback would entail a spending of about Rs 600 crore, and employees will be able to liquidate up to 10 per cent of their vested shares depending on the individual's holding pattern. They added that about 6,000 people are expected to benefit from the buyback. The company confirmed the development but did not disclose any details. Employees are granted options based on their tenure, performance, and contributions to the company. In his e-mail, Krishnamurthy said the fund infusion received by Flipkart is "one of the most significant investments in the digital commerce ecosystem in India, reflecting the opportunity for digital commerce in India and the confidence of investors in our ability to address this potential". "As we continue to focus on meeting the needs of our customers, we will make several investments across people, technology, supply chain, and infrastructure, and continue to strengthen and build on key categories and business opportunities," he added. Krishnamurthy emphasised that the company must sustain its commitment to its existing customers and introduce the value proposition of digital commerce to the next 200 million Indians, ensuring that it innovates to create value and experiences for them. "Through our partnerships with ecosystem players, not only do we need to accelerate growth for them, but we must also direct our efforts to enable inclusive growth for lakhs small and medium businesses who have an opportunity to benefit from the potential of digital commerce in India," he added. Flipkart Group has raised $3.6 billion in funding led by Singapore's sovereign wealth fund GIC, Canada Pension Plan Investment Board (CPP Investments), <keyword id="9240440" type="UNKNOWN" weightage="20" keywordseo="softbank-vision-fund-2">SoftBank Vision Fund 2</keyword> and Walmart, valuing the e-commerce giant at $37.6 billion. The current funding round has also seen participation from sovereign funds DisruptAD, <keyword id="6437412" type="UNKNOWN" weightage="20" keywordseo="Qatar-Investment-Authority">Qatar Investment Authority</keyword>, Khazanah Nasional Berhad as well as marquee investors Tencent, <keyword id="11620199" type="UNKNOWN" weightage="20" keywordseo="willoughby-capital">Willoughby Capital</keyword>, Antara Capital, Franklin Templeton, and Tiger Global. With this deal, <keyword id="163404" type="COMPANY" weightage="20" keywordseo="Softbank">SoftBank</keyword> is re-entering Flipkart's cap table. SoftBank had sold its approximately 20 per cent share when Walmart bought a 77 per cent stake in Flipkart for $16 billion in 2018. Founded in 2007, the Flipkart Group includes Flipkart, fashion specialty site Myntra, and Ekart (logistics and supply chain arm). The Group is also a majority shareholder in the digital payments platform PhonePe. SEE ALSO - <a href="https://www.businessinsider.in/tech/news/google-calendars-new-rsvp-option-will-let-you-specify-how-you-want-to-attend-a-meeting/articleshow/84237490.cms">Google Calendar’s new RSVP option will let you specify how you want to attend a meeting</a> <a href="https://www.businessinsider.in/business/corporates/news/tcs-hires-over-20000-in-june-quarter-its-highest-ever-quarterly-addition/articleshow/84240423.cms">TCS has loaded up half a million peeps as it expects many to move on</a>

E-commerce platform Flipkart to buyback employee stock options worth ₹600 crore, say sources

<ul><li><keyword id="6354742" type="COMPANY" weightage="20" keywordseo="Flipkart">Flipkart</keyword> has launched a new programme called <keyword id="7933169" type="UNKNOWN" weightage="20" keywordseo="flipkart-samarth">Flipkart Samarth</keyword> for Indian artisans, weavers and craftsmen. </li><li>Through this initiative, Flipkart will bring products made by Indian rural artisans on its platform. </li><li>Amazon already has a similar programme called Kala Haat.</li></ul>Walmart-owned Flipkart today announced a new initiative called ‘Samarth’ to help Indian artisans, weavers and craftsmen to bring their products on the e-commerce platform. In order to push forward Indian SMEs, e-commerce platforms have been signing up to promote artisans and weavers. Amazon has a similar programme called Kala Haat, where it promotes artisans in the textile industry who are helping revive age old crafts. Through this initiative, Flipkart hopes to open new market access for over 1.3 crore (millions pls) rural artisans. Flipkart Samarth will also work with NGOs and government bodies to reach out to entrepreneurs and will have a special focus on women-led enterprises, differently-abled entrepreneurs, artisans, and weavers. It will help the artisans who otherwise face multiple challenges from the lack of funding to lack of new markets. The initiative was launched by <keyword id="6379357" type="PERSON" weightage="20" keywordseo="kalyan-krishnamurthy">Kalyan Krishnamurthy</keyword>, <keyword id="2467680" type="PERSON" weightage="20" keywordseo="Flipkart-CEO">Flipkart CEO</keyword> and Anurag Singh Thakur, Minister of State, Finance &amp; Corporate Affairs, in the national capital. “As a homegrown company, we are constantly innovating to find new ways to use e-commerce to uplift and empower all sections of society, especially MSMEs. These small businesses are the backbone of Indian economy, going back centuries. Through ‘Flipkart Samarth,’ we are helping traditionally underserved communities access a pan-India market and engage with over 150 million customers,” said Krishnamurthy. Thakur meanwhile spoke about the opportunities Indian e-commerce brings to the country’s economy. He said that e-commerce is set to create a million jobs in India by 2025. The initiative Flipkart Samarth is aligned with Prime Minister Narendra Modi’s One District One Product vision in Uttar Pradesh - which gives information about handpicked products from each district in the state.

Indian crafts, weaves and others will now be on sale on Flipkart, as a part of its new initiative

<ul><li>Introduces Tamil, Telugu and Kannada interfaces to offer native-language e-commerce experience to consumers.</li><li>The made for India tech stack has been developed in house by <keyword id="6354742" type="COMPANY" weightage="20" keywordseo="Flipkart">Flipkart</keyword>’s team of engineers.</li><li>Over 5.4 million words translated to help reduce the language barrier for users.</li></ul>Flipkart has enabled three new languages on its platform - Tamil, Telugu and Kannada as part of its vision to make online commerce more inclusive and accessible for Indian language users. This launch will help reduce the access barriers to e-commerce for native language speakers. Following the launch of Hindi interface last year, the new regional languages interface have been built on Flipkart’s ‘Localization and Translation Platform’ that will empower customers to comfortably undertake an end-to-end ecommerce journey in their local language, with ease. The introduction of 3 vernacular interfaces, is in line with Flipkart’s aim of developing state-of-the-art innovations to solve for the various pain points of consumers transitioning to e-commerce. According to industry reports*, Indian language internet users are expected to account for nearly 75% of India’s internet user base by 2021. This growing base of language users, primarily from smaller towns, makes it extremely important to enable e-commerce in regional languages to offer a more personalised experience. This will also enable millions of consumers across the country to have an engaging online shopping experience in their native languages. As Southern states account for a significant proportion of Flipkart’s growing user base coupled with a higher adoption rate of native language script, regional language interfaces will help make e-commerce more inclusive. User Research The new language interfaces use a judicious mix of translated and transliteration of words to make shopping more engaging for consumers. This follows an ethnographic study that was conducted over several months to get relevant insights that helped the team develop a platform that enables consumers to interact with the platform in their own language and encourage independence in purchase decisions. The ethnography study involving meetings with participants across cities including Salem, Visakhapatnam and Mysore helped gather insights about consumers’ distinctive language behaviour across these regions and brought forward interesting insights to be implemented. This included a large scale translation of over 5.4 million words across product specifications, banners and payment pages etc., in the three languages. Kalyan Krishnamurthy, Chief Executive Officer of Flipkart Group, said, “In the past year, we have introduced multiple solutions under Voice, Video and Vernacular to increase ecommerce adoption for millions of consumers. We truly believe that language, if solved well, can be an opportunity rather than a barrier to reach millions of consumers who have been underserved. As a homegrown e-commerce marketplace, we understand India and its diversity in a more nuanced way and are building products that have the potential to bring a long-term change. The introduction of Tamil, Telugu and Kannada interfaces, in addition to Hindi &amp; English, is a meaningful step in that direction in line with our mission to democratize ecommerce in India.” Jeyandran Venugopal, Chief Product and Technology Officer at Flipkart said, “As a homegrown e-commerce marketplace, Flipkart understands the importance of having an expanded universe of vernacular interfaces to empower our Bharat users and ensure easy transition of new online users to e-commerce. Today, almost 58% of our user base comes from tier-II cities and beyond and with new language interfaces of Tamil, Telugu and Kannada along with Hindi (introduced last year) will further improve users’ ecommerce journeys by making it simpler and more personal.” The three new language interfaces on Flipkart, are developed post the introduction of Hindi interface 9 months ago which has witnessed impressive adoption. Flipkart’s team of engineers worked on multiple tech challenges in terms of UI and platform architecture, as each language has its own nuanced characteristics.

Flipkart enables three new languages on its platform - Tamil, Telugu and Kannada

<ul><li><keyword id="2811049" type="PERSON" weightage="20" keywordseo="UrbanClap">UrbanClap</keyword> has reportedly raised ₹1.6 crore from <keyword id="6379357" type="PERSON" weightage="20" keywordseo="kalyan-krishnamurthy">Kalyan Krishnamurthy</keyword>. </li><li>This is Kalyan’s second personal <keyword id="6355120" type="UNKNOWN" weightage="20" keywordseo="investment">investment</keyword>, while the first one was B2B <keyword id="138263" type="PERSON" weightage="20" keywordseo="startup">startup</keyword> Moglix. </li><li>The home services startup includes Ratan Tata, SAIF Partners, Accel Partners among others in its list of existing investors. </li></ul>Gurgaon-based home services startup UrbanClap has raised ₹1.6 crore from <keyword id="6354742" type="COMPANY" weightage="20" keywordseo="Flipkart">Flipkart</keyword> CEO Kalyan Krishnamurthy, according to <a href="https://www.business-standard.com/article/companies/after-moglix-flipkart-ceo-kalyan-krishnamurthy-bets-big-on-urbanclap-119040900054_1.html">paper.vc,</a> a business intelligence firm. The Gurgaon-based home services startup UrbanClap has a list of existing marquee investors like SAIF Partners, Ratan Tata, Accel Partners and Bessemer Venture Partners. Prior to this investment, the startup had raised funding of $50 million in a Series D round from Steadview Capital Management and existing investor Vy Capital in November 2018. UrbanClap had also recently <a href="https://bestmediainfo.com/2019/03/urbanclap-unveils-new-campaign-with-ayushmann-khurrana-as-brand-ambassador/">announced</a> that Bollywood star Ayushmann Khurrana is its brand ambassador. The startup, which was founded in 2014, offers services at home for its customers. In almost five years in the business, the startup has garnered more than 35,000 trusted and verified professionals on the platform that serve more than 500,000 customers each month, across 10 cities in India (including Ahmedabad, Bengaluru, Chandigarh, Chennai, Delhi NCR, Hyderabad, Jaipur, Kolkata, Mumbai, Pune). The startup also made its international debut by expanding its offerings into Dubai. Meanwhile, Flipkart CEO Kalyan Krishnamurthy has been upping his investment game. He made his first solo investment in the B2B startup Moglix. The investment amount remains undisclosed. Kalyan during his earlier stint as Managing Director at investment firm Tiger Global had made investments in Nestaway, Curefit etc. See Also: <a href="https://www.businessinsider.in/here-are-the-25-most-popular-workplaces-in-india-according-to-linkedin/articleshow/68704338.cms">Here are the 25 most popular workplaces in India, according to LinkedIn</a> <a href="https://www.businessinsider.in/large-ticket-deals-drive-rise-in-private-equity-investments-in-india-this-year/articleshow/68296615.cms">Large ticket deals drive rise in private equity investments in India this year</a>

Flipkart CEO Kalyan Krishnamurthy places his bets on home services startup UrbanClap

<ul><li>The e-commerce giant’s annual sale which began on September 29 is currently going on. </li><li><keyword id="2546729" type="PERSON" weightage="20" keywordseo="Big-Billion-Day-sale">Big Billion Day sale</keyword> saw two times increase in sales for its opening day as compared to last year. </li><li><keyword id="6354742" type="COMPANY" weightage="20" keywordseo="Flipkart">Flipkart</keyword>’s app got close to 10 million new app downloads in less than a month in the run-up to the sale.</li></ul>Flipkart’s flagship sale event – the Big Billion Day – began on September 29, bringing relief to early waiting consumers. According to Flipkart, its app got close to 10 million new app downloads in less than a month in the run-up to the sale. This year, Flipkart’s opening day sales were more than two times that it was last year. “We started this festive season by setting audacious targets for ourselves and our teams. By all indications this is going to be the biggest festive season that India has witnessed. There is no doubt that e-commerce has not only lifted consumer sentiment but has also driven the industry to set new benchmarks,” said <keyword id="6379357" type="PERSON" weightage="20" keywordseo="kalyan-krishnamurthy">Kalyan Krishnamurthy</keyword>, CEO, Flipkart in a statement. Big Billion Day sale which began as a one-day event is now running in its 6th edition as a six-day event. “Affordability and value driven themes clearly are the pulsating chords for India and Bharat. We are in the centre of it all and are able to serve the ecosystem for their unique needs,” said Krishnamurthy.

Flipkart app got 10 million downloads in the month before Big Billion Day Sale

<a href="http://www.businessinsider.in/searchresult.cms?query=flipkart&amp;sortorder=effectivedate">Flipkart</a> is celebrating ten years and as a part of the jubilation, it is giving its employees a chance to become the CEO for a day. Yes, <a href="http://www.businessinsider.in/searchresult.cms?query=kalyan+krishnamurthy&amp;sortorder=effectivedate">CEO Kalyan Krishnamurthy</a> will hang his boots just for one day. <keyword id="6354742" type="COMPANY" weightage="100" keywordseo="Flipkart">Flipkart</keyword> is hosting an ingenious competition for its employees to win the chance to spearhead India’s largest e-<a href="http://www.businessinsider.in/searchresult.cms?query=ecommerce&amp;sortorder=effectivedate">commerce</a> company for one day. As 'CEO of the Day', the winner will take stock of the business, attend key stakeholder meetings and hand out action points, with Krishnamurthy accompanying him/her. To stand a chance to win, applicants will be required to write a statement of purpose stating why they should be selected to be the CEO for a day. Krishnamurthy said, "This is a fantastic opportunity for our talented Flipsters to get a taste of what it means to be CEO of a large, innovative company like Flipkart. We have a talented pool of people leading high intensity teams who are helping us disrupt and innovate. Through the Big10 CEO for a day competition, we intend to gain some fresh perspective and insights, as well as make it a fun, engaging initiative for our people.” The winner will meet Krishnamurthy over breakfast, followed by some power packed meetings. Flipkart was launched in October 2007.

Flipkart's Kalyan Krishnamurthy is going to make way for new CEO. Here’s the catch

New Delhi, Vehicle price hikes coupled with <keyword id="10796736" type="UNKNOWN" weightage="20" keywordseo="cost-rationalisation-measures">cost rationalisation measures</keyword> taken by OEMs will limit the impact of rising input cost but these might not be adequate enough to sustain margins at the 3QFY21 levels, said India Ratings and Research. Accordingly, the Q4FY21-Q1FY22 standalone EBITDA margins of OEMs could be 100-200 basis points lower than Q3FY21's margins, on account of the recent spike in <keyword id="148676" type="PERSON" weightage="20" keywordseo="input-prices">input prices</keyword>. "The vehicle price hikes coupled with the cost rationalisation measures taken by OEMs to counter the sharp rise in the prices of commodities might not be adequate to sustain margins at the 3QFY21 levels," "While operating leverage is likely to remain favourable due to the demand rebound witnessed in most of the industry sub-segments, 4Q being a seasonally lower quarter, operating leverage could remain lower on a quarterly basis." Besides, the shortage of components such as semi-conductors and other electronic components could impact the overall vehicle production and hence limit the potential demand upside. Overall, for FY21, the report said Ind-Ra does not expect significant deviation in the industry EBITDA margins from its earlier expectations. "Ind-Ra believes that although the increasing input prices would impinge on the near-term profitability of auto OEMs, they are likely to benefit from these corrective measures including cost rationalisation over the medium term, as the input prices normalise." At present, cost of raw materials account for 65-70 per cent of the total revenues, depending on industry segments. "The proportion of metal components is over 95 per cent in commercial vehicles (CVs) and tractors (by weight), while it is 65-70 per cent in passenger vehicles (PVs) and two-wheelers (2Ws)." "In terms of value, metals cost directly account for 8-16 per cent of revenues on parts such as body or chassis, powertrain or engine components, wheel rims." Additionally, metals are used in certain other components, child parts, sub-assemblies which is difficult to quantify. "The prices of these commodities have been on an increasing trend." In YTDFY21, the average cost of steel increased 12.6 per cent compared to the FY20 average, while the prices of aluminum and copper increased 8 per cent and 5 per cent, respectively. "In 3QFY21 alone, the prices for steel, aluminum and copper had increased by 29 per cent, 19 per cent and 9 per cent yoy, respectively. In January 2021, the prices of steel were hovering at historically high levels of INR 73,843 per tonne." SEE ALSO: <a href="https://www.businessinsider.in/entertainment/news/pewdiepies-lyrics-targeting-cocomelon-and-jk-rowling-that-may-have-gotten-youtube-angry-enough-to-pull-the-video-down/articleshow/81102941.cms">PewDiePie's lyrics targeting CocoMelon and JK Rowling may have gotten YouTube angry enough to pull the video down</a> <a href="https://www.businessinsider.in/business/ecommerce/news/flipkart-gets-leaner-with-a-300-million-jabong-write-off-as-ceo-kalyan-krishnamurthy-lists-out-the-priorities-for-2021/articleshow/81105083.cms">Flipkart gets leaner with a $300 million Jabong write-off as CEO Kalyan Krishnamurthy lists out the priorities for 2021</a> <a href="https://www.businessinsider.in/stock-market/news/happiest-minds-is-leveraging-its-partnerships-with-big-players-like-google-microsoft-aws-salesforce/articleshow/81105035.cms">Happiest Minds is a smaller company that does the same thing as MindTree and L&amp;T Infotech — but clearly it is doing it a lot better</a> <a href="https://www.businessinsider.in/tech/news/india-may-require-twitter-facebook-and-others-to-remove-unlawful-content-within-36-hours/articleshow/81104740.cms">India may require Twitter, Facebook and others to remove unlawful content within 36 hours</a>

Vehicle price hikes to limit impact of rising input cost on OEMs, says India Ratings and Research

<keyword id="6354742" type="COMPANY" weightage="20" keywordseo="Flipkart">Flipkart</keyword>, the poster child of the Indian startup ecosystem, was devalued for the seventh time in January 2017, by <keyword id="4205639" type="UNKNOWN" weightage="20" keywordseo="fidelity-partners">Fidelity Partners</keyword>. At a $5.56 billion valuation, Flipkart’s shares were valued at $52.13 in November 2016, down by 36.1 percent from $81.55 per share as of August 2016. The domino effect hit the cab aggregator <keyword id="6354720" type="PERSON" weightage="20" keywordseo="Ola">Ola</keyword> next with the US-based investment firm <keyword id="4205636" type="UNKNOWN" weightage="20" keywordseo="vanguard-world-fund">Vanguard World Fund</keyword> marking down Ola by over 40 percent. 
 According to their regulatory filing with the <keyword id="108474" type="ORGANIZATION" weightage="20" keywordseo="US-Securities-and-Exchange-Commission">US Securities and Exchange Commission</keyword>, the current valuation for Ola is now $3 billion, with its shares dropping from $311.27 per share in the previous quarter to $182.70 apiece. During their peak, Ola had raised $500 million at a valuation of $5 billion. 
 That’s not all. According to reports, e-commerce giant <keyword id="541988" type="COMPANY" weightage="20" keywordseo="SnapDeal">Snapdeal</keyword> is reportedly looking at raising funds at a lower valuation of $4 billion. At their last fundraising round, they raised $200 million at a valuation of $6.5 billion. 
 
Valuations are normally decided according to a company’s market share, its gross margins, and its rate of growth, among other factors, but is anyone talking about the elephant in the room? Does a number decide a company’s worth or does the mettle lie someplace else? 
 
What’s The Big Deal about Valuations? 
 
While Valuations and devaluations are part of the game, they are a mix of market environment, risk appetite, a fund manager’s biases, hot new trends, fear of missing out, the multiples comparable are commanding, and of course, expected cash flows and margins. 
In 2015, we lauded the entry of Flipkart, Ola and Snapdeal in the Unicorn club. The first quarter of 2015 saw over $1.7 billion funding in start-ups and all we hear now are downturns with reality hitting the magic creatures to the ground and forcing them to compete in a horse race for fund-raising. 
 
<a href="http://www.businessinsider.in/heres-how-uber-is-letting-you-earn-from-its-platform-uberdost/articleshow/57083396.cms">ALSO READ: Here's how Uber is letting you earn from its platform 'UberDost'</a> 
 
While there were muffled concerns of profitability and unit economics, the dynamics took a harder turn when in the middle of 2016 the world economic dynamics shifted. 
 
Suddenly, the pouring funding started slowing down, news of firing rounds, internal tiffs, and investor involvement began to cloud the startup skyline. 
 
Now the lauded valuations started to seem bloated and overhyped, and the cost-cutting started and it doesn’t seem to end. 
 
 
 
 
The secret is in the Business Model 
 <keyword id="824043" type="COMPANY" weightage="20" keywordseo="Business-Insider">Business Insider</keyword>, while digging deeper into factors ailing the startup ecosystem in India, realized that business models had to be one of the core ingredients to a startup’s success or failure. So, we got in touch with key players, notable investors and successful companies that had a say in the functions of the industry. 
 
What clearly emerged was that there were mainly three business models that most start-ups and unicorns, followed in India- 
 
1) Cut prices to gain industry share and chase profit later 
2) Set up person-to-person exchanges 
3) On-Demand Model 
 
Now we break down the models to see why Indian start-ups think they’d work and why they haven’t succeeded yet. 
 
Investors’ Point of View 
 <keyword id="262067" type="PERSON" weightage="20" keywordseo="Mahesh-Murthy">Mahesh Murthy</keyword>, Co-Partner, Seedfund, one of India’s most vocal investors told us what’s wrong with the Indian startup ecosystem,”The problem is that we are idolizing businesses that are not ‘New’. There is nothing elusive or different about the companies we look up to, they are just copycats.’’ 
 Seedfund, which is an early stage VC firm has invested in companies like Redbus.in, Chumbak, Carwale, and Voonik. “Real businesses need little or no marketing. The cost of acquiring a customer shouldn’t be higher than your investment in your product which is what is happening right now’’<keyword id="20148" type="PERSON" weightage="20" keywordseo="murthy">Murthy</keyword> comments on the viability of the business models of India’s best-known <keyword id="6362513" type="ORGANIZATION" weightage="20" keywordseo="Startups">startups</keyword>. 
 “Innovation for the sake of innovation is useless. Most consumers prefer the companies that are competitors to Flipkart, Snapdeal, and Ola and that speaks volumes. We are just looking for great service coupled with great value for money and <keyword id="18635" type="CITY" weightage="100" keywordseo="Amazon">Amazon</keyword> and Uber give us that while the other companies don’t hit the mark while getting celebrity endorsements with full-page ads.’’ 
 “Rule Number 1 of business: Never lose money. Rule Number 2: Don’t forget Rule Number 1,” said <keyword id="71133" type="PERSON" weightage="20" keywordseo="Warren-Buffet">Warren Buffet</keyword>, probably the most popular investor in the world. 
 <keyword id="542474" type="PERSON" weightage="20" keywordseo="Reid-Hoffman">Reid Hoffman</keyword> from <keyword id="28120" type="CITY" weightage="20" keywordseo="Linkedin">LinkedIn</keyword> and now a VC says that as a VC, you should be able to put your money into a startup and walk away from your investment and at the most, you are best placed to understand a sector if you have built a business in it or at the very least, worked in it. For Indian start-ups, we see the opposite happening with Flipkart who recently appointed <keyword id="6379357" type="UNKNOWN" weightage="20" keywordseo="Kalyan-Krishnamurthy">Kalyan Krishnamurthy</keyword> as CEO, who is an ex-employee at Flipkart’s key investor, Tiger Global. 
 
What is a business model? 
 
A business model explains which consumer pain a startup chooses to relieve, why your solution works better than competing ones and how big a wedge a company can drive between what customers are willing to pay and the costs. 
 
Breaking down the Business Models 
 
There are broadly the following business models at play when it comes to start-ups that hold the public eye in India: 
 
1. Cut prices to gain an industry share and chase profit later: Target a huge market and sell a product at the lowest price with fast delivery and great service. As the company grows, expand the product line, negotiate volume discounts with suppliers, invest in technology, customer response time and cut waste from the operations. Then deliver the lower costs to customers in the form of lower prices. 
 
This was Amazon’s model which is still one of the fastest growing companies in India and the world. Although it was founded back in 1994, Amazon didn’t actually make a profit until 2001. Amazon has some profitable projects, but the money made from them is typically used as investments to fund other Amazon businesses and ventures. The company invests its profits in new lines of businesses and uses them to expand. In short, Amazon seems to value growth over profits. 
 
 
 
​ <keyword id="8589" type="PERSON" weightage="20" keywordseo="padmaja">Padmaja</keyword> <keyword id="980938" type="PERSON" weightage="20" keywordseo="Ruparel">Ruparel</keyword>, President, Indian Angel Network doesn’t believe in this model simply because she thinks that Indian consumers are flighty, “There is a constant need to lure the consumer to stick with you which is tricky when you’re not the only player in the market. Your focus here is on how quickly you can grow the market and not on your business strategy.’’ Ruparel believes in investing in a much more stable business model, “We are old-fashioned for sure as our focus is on businesses building a top-line and a bottom-line. We ascertain a business by unit economics and even though the cycle might be slightly longer, B2B start-ups create a sustainable business.” 
 
“The consumer is surely attuned to buying online which was their aim, but only some players will remain in this market. Consolidation is inevitable as loss-making businesses can’t stay afloat for long, but only time will tell who will remain the top dogs here,’’says Padmaja when asked about the future for consumer-centric start-ups. 
 
India’s perspective: “E-commerce companies like Snapdeal and Flipkart are following a similar model to that of Amazon in India. The difference is that Amazon can afford to lose money in India as it is profitable in other markets. The former players are just playing in India where they’re losing money trying to compete with Amazon,” comments Mahesh Murthy. 
 
2. Set up person-to-person exchanges: A house owner in a town has a huge house that has idle rooms that aren’t occupied. The young professionals living in the city need accommodation in different towns to work flexibly but they don’t want to own a house or live in expensive hotels. It seems to be working for <keyword id="719382" type="COMPANY" weightage="20" keywordseo="Airbnb">Airbnb</keyword> which doesn’t own any inventory and millions of people have taken advantage of these services, and Airbnb now has a market value estimated at $30 billion—roughly the same size as the <keyword id="183920" type="CITY" weightage="20" keywordseo="Marriott-International">Marriott International</keyword> hotel chain. 
 
Vikram Gupta, CEO, IvyCap Ventures, “India is not a mature market where you can write off $100 million checks to companies that are spearheaded by college graduates or in some cases, dropouts. The entire ecosystem is disturbed as new companies were getting funding at overhyped valuations. The market has started to finally stabilize and we see investors going back to the revenue as a yardstick for company’s growth instead of the GMV. The businesses are coming back to realistic valuations and while they might have money left in the bank, they are looking to reduce their cash burn rate.” 
 
 
 
India’s perspective: Companies like <keyword id="2808667" type="UNKNOWN" weightage="20" keywordseo="OYO">OYO</keyword> are trying to work with small hotels and guesthouses and have even leased their own properties but the burn-rate is consistent. With simplifying its business model and focusing on one aspect; people sharing their homes with people and minimal revamping, Airbnb has revolutionized how the world sees hotel accommodation forever. 
 
3. On-Demand Model: Smartphones have driven transformational shifts in how we consume goods and services, and many consumers have become acclimated to purchasing at the press of a button. The on-demand model allows a startup to leverage new technology while utilizing existing infrastructures. Another benefit lies in the use of freelance labor with its obvious advantages in cost cutting. 
 
Uber is a great example of the sharing economy where they connect the supply to the demand of taxis without investing in their own fleet. 
 
India’s perspective: <keyword id="6362049" type="UNKNOWN" weightage="20" keywordseo="Ola-Cabs">Ola Cabs</keyword> is Uber’s biggest competitor in India and while both companies burn a lot of money trying to lure customers to get into a taxi, Uber is currently the world’s most valuable startup at $69 billion. 
 
<a href="http://www.businessinsider.in/online-cab-players-in-2016-completed-nearly-half-a-billion-rides-with-250-y-o-y-growth-in-india/articleshow/57273938.cms">ALSO READ: Online cab players in 2016 completed nearly half a billion rides with 250% y-o-y growth in India</a> 
 
Winner Speak 
 V. Krishnan, Co-founder, and Director of <keyword id="1675768" type="UNKNOWN" weightage="20" keywordseo="Justdial-Ltd">JustDial Ltd</keyword> who likes to call his company an ‘18-year old startup’ says that for a successful business you don’t need an extraordinary idea, “The problem with start-ups today is that they don’t focus on profitability. To create a profitable business, you need extraordinary execution, not an idea. Giving money to people to use your services doesn’t make sense. The Indian customers are not loyal to brands, but to offers. Our goal was to create a world-class business and a world-class company.’’ 
 
For the first ten years of JustDial’s existence, the company didn’t raise any funding. The company ran on a shoe-string budget and used its own money to survive. In 2006, when internet penetration and broadband gained traction in India, the company was ready with its fully functional website to complement its telecom services. From 2-3% internet users to now 85% internet users, the company has grown to 200 Cr web searches annually, without any cashback or incentives. The company is probably one of the rarely profitable internet companies in the country today. 
 
<a href="http://www.businessinsider.in/65-of-start-ups-feel-indian-startup-eco-system-may-be-in-a-tech-bubble-report/articleshow/57205211.cms">ALSO READ: 65% of start-ups feel Indian startup eco-system may be in a tech bubble: Report</a> 
 
“The core business of start-ups isn’t ready but there is marketing happening. India is going to be giving you a lot of opportunities. Everyone wants to create a company, raise a great valuation and sell it off to do something bigger; the attitude is wrong," he signs off. 
​ 
Business Insider got in touch with Flipkart, Ola, Snapdeal, and Uber for this story but the companies chose to not comment on the same. 
 
​ 
 
Business Insider’s Take 
 
While popular Indian start-ups struggle to survive without additional funding coming in, we see some internet companies like JustDial and BookMyShow staying afloat, without investor-intervention. 
 
When it comes to businesses and business models, investors and successful companies agree that the tried and tested works; build a business with a strong product that you can alter as technology develops. The business of losing money can only take you so far if you don’t put it to good use. 
 
There’s a difference between investment into a product and burning money, and the start-ups better realize that before they get acquired or relinquished by the players who created the game that they’re set to lose. 
 
The market is big enough for companies that create value for customers not just for start-ups that create customers; the difference is everything. 
 
(Graphics: All figures in INR crores for the financial year 2015- 2016. Source: <a href="http://www.livemint.com/Companies/vtqiTC9VgJgnUfOAH2QdiL/Flipkart-still-Indias-top-startup.html">Mint Research</a>) 
 
**For Oyo, the result is from Apr-Dec 2015. 
*BookMyShow is the only company mentioned that has profits.

BI Investigation: Business models akin to Amazon and
Uber’s aren’t working for Indian startups

<keyword id="1892574" type="PERSON" weightage="100" keywordseo="Nitin-Seth">Nitin Seth</keyword>, Chief Operating Officer of India’s leading e-commerce Company <keyword id="6354742" type="COMPANY" weightage="100" keywordseo="Flipkart">Flipkart</keyword> has put down his resignation citing personal reasons. Seth was in charge of Flipkart’s logistics unit <keyword id="2057197" type="UNKNOWN" weightage="100" keywordseo="eKart">Ekart</keyword> and also headed corporate functions like strategy and human resources (HR) till recently, before CEO <keyword id="6379357" type="UNKNOWN" weightage="100" keywordseo="Kalyan-Krishnamurthy">Kalyan Krishnamurthy</keyword> took over the HR function last week. Seth's exit will increase the power and control of former <keyword id="260318" type="COMPANY" weightage="100" keywordseo="Tiger-Global-Management">Tiger Global Management</keyword> executive Krishnamurthy. "Ekart and corporate functions, that Seth was in charge of, will now report to Kalyan," said an <a href="http://m.economictimes.com/small-biz/hr-leadership/leadership/flipkarts-nitin-seth-quits-as-coo/articleshow/58920586.cms">ET</a> source. Before joining Flipkart, Seth worked as the MD of <keyword id="6405604" type="CITY" weightage="100" keywordseo="fidelity">Fidelity</keyword> International, where he managed operations across India and Tunisia. Prior to that, he led <keyword id="6372399" type="COMPANY" weightage="100" keywordseo="McKinsey">McKinsey</keyword>'s global knowledge centre in India for eight years. Seth had joined Flipkart in February 2016 as chief people officer, and quickly grew in ranks and responsibilities even amidst multiple management restructurings that Flipkart went through. He was made the COO in January, at the same time when Krishnamaurthy became the CEO after cofounder <keyword id="6364080" type="PERSON" weightage="100" keywordseo="Binny-Bansal">Binny Bansal</keyword> took over as group CEO. (Image source Flipkart)

Flipkart's COO steps out; CEO Krishnamurthy to have even more control

<ul><li><keyword id="80487" type="ORGANIZATION" weightage="20" keywordseo="walmart">Walmart</keyword> now owns a 77% stake in <keyword id="6354742" type="PERSON" weightage="100" keywordseo="Flipkart">Flipkart</keyword>.</li><li>The company will invest $16 billion for its stake.</li><li>Flipkart founder, <keyword id="225032" type="PERSON" weightage="20" keywordseo="Sachin-Bansal">Sachin Bansal</keyword>, is exiting the company, as is chief investor <keyword id="163404" type="ORGANIZATION" weightage="20" keywordseo="Softbank">Softbank</keyword>.</li></ul> The Walmart-Flipkart deal is finally official, with the US-based retail giant acquiring 77% stake in the Indian unicorn. Flipkart’s chief investor Softbank is selling off its shares, as is its founder Sachin Bansal. The deal has been in the works since September 2016. At the time, Walmart wanted to acquire a minority stake in the company. Today’s announcement marks a landmark in both the Indian startup and e-commerce industry. Flipkart has been one of the biggest success stories in the country, starting from a 2BHK apartment over a decade ago. Here’s how the company’s journey played out. The Journey 
	
	
	
	
	
	
	<div type="image" title="flipkart info" msid="64100303" hostid="261"></div>















 <ul><li>Flipkart began in 2007, when the Indian e-commerce market was untapped. Sachin Bansal and <keyword id="6364080" type="PERSON" weightage="20" keywordseo="binny-bansal">Binny Bansal</keyword>, the founder of Flipkart, began the company as a replica of <keyword id="18635" type="LOCATION" weightage="20" keywordseo="Amazon">Amazon</keyword> for the Indian market.</li></ul><ul><li>It opened its first office in Bangalore in 2008 followed by expansions in Delhi and Mumbai. It even launched its 24x7 customer service too.</li></ul><ul><li>In 2009, Accel Partners invested $1 million in the company.</li></ul><ul><li>In 2010 they pioneered the Cash-on Delivery payment mode in India. With this, the company launched its logistics department Ekart and announced a 30 day return policy.</li></ul><ul><li>In 2011, Flipkart launched their digital wallet, and acquired Chakpak and Mime360. By now they delivered to over 600 cities.</li></ul><ul><li>In 2012, they launched their mobile app, bringing the marketplace in the hands of the consumer.</li></ul><ul><li>Flipkart also introduced the Next Day Shipping Guarantee in 2013.</li></ul><ul><li>It raised more funding, worth $160 million in 2013.</li></ul><ul><li>Over the years, the company grew exponentially with acquisitions of e-tailers like Myntra and WeRead. Huge investments even came in from investors across the globe. </li></ul><ul><li>In 2016, it was the first indian app to cross 50 million users, while it also crossed the 100 million registered user threshold.</li></ul><ul><li>The biggest investment came in from Japanese SoftBank, which made a $2.5 billion bet on the Indian unicorn and e-commerce giant. .</li></ul><ul><li>Sachin Bansal, founder of Flipkart, stepped down from his post as the CEO in 2016. This was filled in 2017 by <keyword id="6379357" type="PERSON" weightage="20" keywordseo="kalyan-krishnamurthy">Kalyan Krishnamurthy</keyword>, who took over from Binny Bansal.</li></ul><ul><li>Flipkart acquired Myntra for $300 million in 2014 and <keyword id="6388367" type="LOCATION" weightage="20" keywordseo="jabong">Jabong</keyword> for $70 million in 2016.</li></ul><ul><li>In 2018, the company consolidated all its Bangalore offices into one large campus with an area of .83 million square feet.</li></ul><ul><li>In terms of finances, <keyword id="3515858" type="ORGANIZATION" weightage="20" keywordseo="flipkart-group">Flipkart Group</keyword> incurred losses of ₹87.7 billion attributable to the owners of the company in FY17, which rose from ₹52.16 billion in FY16. Consolidated revenue increased by 29% to ₹19,855 crore in FY17.</li></ul><ul><li>Flipkart had wiped out half of its $6.1 bn investments as <a href="https://www.bloombergquint.com/business/2018/03/21/flipkarts-losses-have-wiped-out-half-of-66-billion-injected-by-investors">of early 2018</a>.</li></ul><ul><li>As of now the company is valued at $20 billion.</li></ul>

How Flipkart went from being an online bookseller to India’s biggest e-commerce story

<ul><li><keyword id="80487" type="COMPANY" weightage="20" keywordseo="walmart">Walmart</keyword> likely to purchase 75% stake in <keyword id="6354742" type="COMPANY" weightage="20" keywordseo="Flipkart">Flipkart</keyword>, making it the largest <keyword id="30334" type="ORGANIZATION" weightage="20" keywordseo="acquisition">acquisition</keyword> deal for the company. </li><li>Alphabet Inc., Google’s parent company may also be looking to invest in Flipkart. </li><li><keyword id="225032" type="PERSON" weightage="20" keywordseo="Sachin-Bansal">Sachin Bansal</keyword>, Flipkart co-founder, might be stepping down.</li></ul>Update: Flipkart's board has <a href="https://www.bloomberg.com/news/articles/2018-05-04/flipkart-board-is-said-to-approve-15-billion-deal-with-walmart" data-type="tilCustomLink">reportedly</a> approved a deal for Walmart to acquire 75% of the Indian e-commerce company. The Walmart-Flipkart drama deal is <a href="http://www.bgr.in/news/walmart-acquires-flipkart-buys-73-percent-stake-usd-14-billion-amazon-binny-sachin-bansal-ceo-kalyan-krishnamurthy/">reportedly</a> finalised. The American company has apparently agreed to purchase a 73% stake in the Indian online shopping portal, taking Flipkart’s <a href="https://factordaily.com/walmart-to-buy-73-per-cent-of-flipkart/">valuation</a> to somewhere between $20-22 billion. This means the American giant will be spending at least $14.6 billion in the cash-and-stock buyout. Both the companies have signed tentative agreements on May 3, 2018, and the deal will apparently involve a mixture of cash and stock, with the cash component amounting to around 55%. Event Alphabet Inc., Google’s parent company, might a part of this agreement by way of a $3 billion investment. But there’s more to this merger than just the two company’s coming together. While <keyword id="6379357" type="PERSON" weightage="20" keywordseo="kalyan-krishnamurthy">Kalyan Krishnamurthy</keyword> will continue as Flipkart’s CEO, the company’s founder, Sachin Bansal will <a href="https://economictimes.indiatimes.com/small-biz/startups/newsbuzz/walmarts-entry-into-flipkart-may-see-sachin-bansals-exit/articleshow/64023197.cms?from=mdr">probably</a> be stepping down. Not only will he be leaving the company’s day-to-day activities, he will also be giving up his seat on the board of directors. Co-founder, <keyword id="6364080" type="PERSON" weightage="20" keywordseo="binny-bansal">Binny Bansal</keyword>, will probably remain after the merger since reports have indicated that Walmart is keen on keeping one of them. The Walmart-Flipkart deal has ruffled a lot of feathers but despite the turn out, the company’s biggest investor, <keyword id="163404" type="COMPANY" weightage="20" keywordseo="Softbank">SoftBank</keyword>, will be leaving the foray. They weren’t particularly amped about the deal when it was being initiated and now that it seems to be final, SoftBank plans on selling off its 25% stake in the company to earn nearly $5 billion. Essentially, SoftBank’s doubled their investment of $2.5 billion in less than a year. Flipkart’s other investors, like Tencent, Microsoft and Tiger Global aren’t looking to cash out just yet. The conclusion of this deal will ideally result in one of the largest acquisitions involving an Indian company. It will also be one the biggest acquisition deals by Walmart.

You Searched For "Flipkart CEO Kalyan Krishnamurthy" and got 13 results

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How Flipkart went from being an online bookseller to India’s biggest e-commerce story

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Indian unicorn Flipkart's board approves $15 billion deal with Walmart

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