Flipkart's sucess: A boon or bane for India?
Start-up is something that takes a lot of innovation, effort, and courage to stand in a competitive environment like the Indian market. So, here I am sharing a story of Flipkart (a private company that started in 2007) about its origin, success, and failure to survive as an Indian company due to the outdated Government policies for FDI in the multi-brand retail sector.
Whenever,as an Indian, I think about the best startups in India, the first company whose Grand success comes into my mind is Flipkart. Flipkart is an E-Commerce company originally started in 2007 by two great young minds Vinny Bansal and Sachin Bansal. They made a simple website, did some marketing through pamphlets, took orders for the books by showing titles on the website, and started home delivery. They started delivering books on their personal scooters on the door to door basis. In their first year, they received only twenty orders.Initially, the payment could only be made through debit or credit card. Later on, Fllipkart brought a revolutionary concept to India first time i.e. Cash on Delivery (COD). Flipkart soon became a company worth billions. According to the 2012 FDI policy, only 51% FDI was allowed in multi-brand retail sector that too with the approval of the Government. In 2018, 77% stake was sold to Walmart for just $20 billion by the owners as they couldn't receive FDI beyond a limit. If the company wouldn’t be sold at that time the net worth of the company by 2025 would be half a trillion which is much more than any other Indian company ever.We could have been stand in the league of top companies of the world like Facebook, Alibaba, Tencent, etc. If I ever get an opportunity to start up my own company I would rather prefer some foreign country to incorporate the company where there is more freedom for the corporates. This was my story of motivation to start my own company somewhere sometime.