In an attempt to expedite decision-making and speed efforts to restore the declining discount retailer’s client base, Target said on October 23 that it is laying off roughly 1,800 corporate personnel. According to a corporate representative, the company intends to eliminate roughly 800 open positions and is anticipating sending layoff notices to about 1,000 employees next week.
According to the spokesman, the majority of the impacted employees are employed at Target’s Minneapolis headquarters, although the layoffs account for around 8% of the company’s corporate personnel worldwide.
Layoffs Part of New Business Strategy: New CEO
A statement outlining the downsizing was sent to Target employees on 23 October by Chief Operating Officer Michael Fiddelke, who will take over as CEO on February 1. He encouraged staff members at the Minneapolis headquarters to work from home the following week and stated that more information would be available on October 28.
In his note, 20-year Target veteran Fiddelke stated that the corporation has been hampered by the complexity it has built up over the years. Decisions have been slowed down by too many layers of overlapping work, which has made it more difficult to realise ideas. Walmart and Amazon have surpassed Target, which has roughly 1,980 locations in the US, in recent years as consumers have reduced their discretionary spending due to inflation.
Consumers have complained about disorganised stores with goods that don’t match the upscale-looking but low-cost niche that gave the business the mockingly upscale moniker “Tarzhay” in the past.
Fiddelke’s Three Urgent Priorities to Revive Target’s Business
Regaining the company’s position as a leader in merchandise selection and display, enhancing the customer experience by ensuring that shelves are regularly stocked and stores are clean, and investing in technology are the three top priorities Fiddelke stated when he was named Target’s next CEO in August.
In his letter to staff, he listed the same objectives and described the layoffs as a “necessary step in building the future of Target and enabling the progress and growth we all want to see.” One aspect of the task that lies ahead of us, he added, is modifying Target’s structure. In order to improve its retail leadership in style and design and facilitate quicker execution, it will also be necessary to adopt new behaviours and set clearer priorities.
In nine of the previous eleven quarters, Target has reported flat or declining comparable sales, which include sales from both established physical stores and online outlets. Comparable sales fell 1.9% in the company’s second quarter, which also saw a 21% decline in net income, according to an August report.
According to a company spokeswoman, Target’s sorting, distribution, and other supply chain workers will not be impacted by the job layoffs, nor will any staff working in its stores. According to the spokeswoman, severance packages and compensation and benefits would be provided to the corporate employees who lose their employment until January 8.
Quick Shots
•Target’s
new CEO cites “too many management layers” slowing growth.
•About
1,800 corporate roles affected, including 800 open positions.
•Most
layoffs at Minneapolis headquarters; around 8% of global corporate staff.
•Target’s comparable sales
declining; net income down 21% in Q2.
After the implementation of a new US regulation that charges a substantial $100,000 cost for each new H-1B visa petition, the US retail giant Walmart Inc. has halted making job offers to applicants who need sponsorship for an H-1B visa, Bloomberg reported on 22 October. Given the dramatic increase in the expense and complexity of employing foreign specialists, the move underscores an increasing hesitancy among major US firms.
Walmart’s corporate positions, which normally require highly qualified workers in technology, data, and finance activities, are reportedly the main targets of the pause. Domestic and store-level operations are not expected to be affected. The business stated that while it is still dedicated to employing top people, it is approaching visa-based employment with “thoughtfulness”.
Confusion Among Companies as Trump Hikes Visa Fees
The ruling follows the Trump administration’s recent directive to charge new H-1B visa applicants a one-time cost of $100,000. Renewals and pending applications submitted before the announcement are exempt from the new rule, which goes into effect in late September 2025. But it has raised a lot of worries in sectors like technology and professional services that depend significantly on talent from around the world.
The financial ramifications for Walmart are significant. It is now far more expensive to sponsor a foreign worker, which makes it less feasible for businesses to hire applicants who require new visas. The company’s action is seen by analysts as a preventative measure to evaluate the administrative and financial effects prior to resuming sponsoring activities. The wider ramifications are not limited to Walmart. It is anticipated that many US businesses, particularly in the technology industry, may evaluate or reduce their H-1B hiring plans.
To get around the increased cost, some employers would move more jobs offshore or use remote working options, while others might favour US nationals or permanent residents. The move creates additional uncertainty for foreign experts, especially those from India, who make up the majority of those with H-1B visas. Offers of jobs that need sponsorship for a visa can now be postponed, cancelled, or reorganised. Additionally, the regulation might hasten the trend of businesses shifting back-office and technological operations to less expensive locations like Eastern Europe or India.
Critics Vs Supporters, Who is Right?
The $100,000 fee’s critics contend that by limiting access to international talent, it might harm US innovation and competitiveness. However, supporters see it as a way to safeguard domestic workers and make sure businesses give local hiring priority. Walmart’s suspension emphasises the immediate disruption brought about by the policy change, even though it is stated to be temporary.
Once the rule’s long-term effects and any legal challenges are more clear, the business and other employers are anticipated to review their international recruiting practices. Foreign job seekers hoping to work in the US in the interim might have to look into other options, including remote work through foreign offices, intra-company transfers (L-1 visas), or exceptional ability visas (O-1). The case highlights a larger change in the US labour and immigration environment, where corporate employment decisions are increasingly influenced by politics, cost, and compliance.
Quick Shots
•Walmart
pauses job offers for candidates needing H-1B sponsorship due to $100,000
visa fee.
•Trump
administration mandates $100K one-time fee for new H-1B visas, effective late
Sept 2025.
•Pause
mainly affects tech, data, and finance positions; domestic/store jobs remain
unaffected.
•Sponsoring foreign workers has
become far more expensive, prompting Walmart to reassess hiring.
Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations.
Don’t you think online buying and selling have become an essential part of our lives? It was youth and adults who initially relied on the Internet to buy products at affordable prices with amazing return policies and guarantees; it was a trend back then.
Nowadays, eCommerce websites have made online shopping a common practice for people of all ages. Flipkart is India’s most popular e-commerce website, known for its innovative business model.
Flipkart is the leading Indian eCommerce website founded by Sachin Bansal and Binny Bansal in 2007. The company is headquartered in Bengaluru, India. This Indian eCommerce store has brought a revolution to the Indian e-retail industry.
Let’s now delve into the success story of Flipkart and learn about Flipkart’s founders, its history, startup story, subsidiaries, owners, business and revenue model, and more.
Flipkart, an Indian eCommerce company founded in 2007 by Sachin Bansal and Binny Bansal, has become a household name. Based in Bengaluru, India, Flipkart has been selling a vast range of products online, similar to Amazon. Flipkart shopping offers a wide variety of products, making it a popular choice for online shoppers in India.
Its phenomenal marketing strategies have attracted the attention of retail giant Walmart, which acquired Flipkart for $16 billion in May 2018.
Along with the imposing worldwide market share that Walmart has in the retail industry, the Sam Walton-founded company is also famous for its inspirational business model.
In the initial years, Flipkart focused on selling books, but today the catalog covers categories like electronics, fashion, home essentials, groceries, and lifestyle products. More than 1 billion people have shopped on Flipkart, making the e-commerce giant the leading e-retailer in India.
Flipkart also has subsidiaries like Myntra, eBay, Ekart, Jeeves, and more. Flipkart also launched Shopsy on July 2, 2021, which is designed to behave like an app that will encourage the nation’s entrepreneurs to reap all the benefits of digital eCommerce that come their way without investments.
Today, Flipkart has over 100 million registered users, 100+ thousand sellers, and 21+ state-of-the-art warehouses.
It also boasts about 10+ million daily page visits and over 8 million shipments per month. Flipkart currently works as a subsidiary of Walmart.
The current CEO of Flipkart Group is Kalyan Krishnamurthy.
Flipkart acquired a 100% stake in Walmart India, which operates the Best Price cash-and-carry business.
Thus, we are launching Flipkart Wholesale. This step helped Flipkart strengthen its hold on the grocery, food, and fashion businesses, which are stated to be highly competitive in this dynamic environment.
The launch of Flipkart Wholesale will be initiated in August, thus piloting the services for the grocery and fashion categories.
Flipkart Wholesale Logo
“The Best Price operation will continue to run as it is. In terms of legal structure, currently, Walmart India is a separate entity within the Flipkart Group”, Said Sameer Aggarwal, CEO, Walmart India.
The role of Kirana Stores and MSMEs in India’s retail ecosystem is vital. With a focus on meeting their needs, Flipkart Wholesale is all set to widen opportunities at a significant value. By leveraging their expertise and knowledge, the team is breaking new norms and helping Indian businesses grow and succeed.
Earlier in 2018, Flipkart was acquired by Walmart for $16 billion, which was the largest online e-commerce acquisition in the world to the present. Flipkart launched its wholesale unit with a presence in the fashion and grocery categories.
“With the launch of Flipkart Wholesale, we will now extend our capabilities across technology, logistics and finance to small businesses across the country,” Said Kalyan Krishnamurthy, CEO, Flipkart Group
At present, Flipkart Wholesale will be headed by Adarsh Menon (a veteran at Flipkart). In order to ensure smooth functioning and transition, Sameer Aggarwal (CEO, Walmart India) will remain with the company for a while.
Flipkart – Industry and Target Market Size
Flipkart uses an undifferentiated targeting strategy since people of all demographies purchase items online, which are available to everyone where delivery is possible.
National and multinational e-commerce companies are giving neck-to-neck competition to each other, due to which their positioning is very important. Flipkart has positioned itself as a trustworthy and customer-friendly eCommerce brand.
The online retail industry market is of a size of around $60 billion. It is expected to reach $200 billion by the year 2026. The Indian and global e-commerce industry is on the verge of exponential growth, and the introduction of high-speed internet has fueled the process across the nation.
Before the pandemic, India was one of the most attractive eCommerce markets globally, expected to deliver a 30% CAGR over a six-year time horizon, according to a report by RedSeer Consulting.
Flipkart – Founders and Team
Flipkart was founded by Sachin Bansal and Binny Bansal in May 2007.
Flipkart Founder
Education
Sachin Bansal
Bachelor of Engineering in Computer Science and Engineering from Indian Institute of Technology Delhi (IIT Delhi)
Binny Bansal
Bachelor of Engineering in Computer Science and Engineering from Indian Institute of Technology Delhi (IIT Delhi)
Sachin Bansal and Binny Bansal – Flipkart Founders
Kalyan Krishnamurthy is the CEO of the company. He was appointed CEO of the company in January 2017, when he replaced Binny Bansal.
Sachin Bansal
Sachin Bansal is the co-founder of Flipkart. After obtaining a Bachelor’s Degree in Computer Science from IIT Delhi, Sachin started with Amazon as a Senior Software Engineer after a brief stint at Techspan. He then left his job at Amazon and co-founded Flipkart.
At Flipkart, he managed the positions of CEO and Chairman before resigning in 2018 following Walmart’s major acquisition of Flipkart, where the American multinational company acquired around 77% stakes in the Indian e-commerce company. Bansal eventually started Navi with Ankit Agarwal and is currently serving as Chairman at Navi. The net worth of Sachin Bansal is currently at $1.20 billion, as of the Forbes report of 2025.
An IIT Delhi alumnus, much like Sachin, Binny completed his Bachelor’s in Computer Science and Engineering, after which he co-founded Flipkart. Binny Bansal was the COO and CEO of Flipkart.
Sachin was the CEO since the inception of Flipkart,, and in 2016, Binny Bansal took over as CEO while Sachin Bansal became the executive chairman of the company. However, Binny also resigned from Flipkart in 2018 due to personal misconduct allegations against Flipkart.
Bansal also served as the group CEO of the organization. Moreover, Binny has also served as a board advisor at Acko, Blackbuck, GreyOrange, Udhyam Learning, and more such companies. Binny Bansal is currently serving as a co-founder and executive chairman at xto10x Technologies.
The net worth of Binny Bansal is also $1.4 billion, as reported by Forbes in 2025. Apart from serving in the SaaS consulting startup, Bansal was also on the Board of Directors of PhonePe.
Binny Bansal sold stakes worth $264 million (nearly Rs 2,060 crore) to Tencent, as per official documents checked out on June 13, 2022.
The documents revealed that the transaction had already been done in October 2021 and was shared only at the start of FY22.
At the end of the transaction, Binny Bansal was holding around 1.84% of the stakes, while Tencent was currently holding 0.72%. The Chinese tech giant is holding around 4-5% stakes in Flipkart Pte, which is the Singapore-based parent of Flipkart.
Binny Bansal has a history of selling stakes. He had previously sold stakes worth $90 million in 2019 to Tiger Global across two deals. Bansal also sold shares worth $76 million to FIT Holdings SARL, the Luxembourg entity that is owned and operated by Walmart, in the same year.
Flipkart’s SVP, Growth and Monetisation, and Shopsy Head, Prakash Sikaria, are exiting after the festival sales, as per reports dated July 22, 2022. Sikaria also headed other verticals like recommerce and travel, which will now be taken over by Adarsh Menon.
On the other hand, Flipkart Wholesale, the B2B e-commerce business of Flipkart, will be headed by Koteshwar LN. However, Flipkart has yet to decide who to appoint for the other functions that Sikaria handled.
Flipkart currently operates with an employee strength of 33,000+ employees.
The IIT-Delhi graduates, Sachin and Binny Bansal, were employees at Amazon when they began thinking of building their own company in India.
Though Sachin was an employee working with Amazon for some time, Binny was referred to join the company by Sachin, and the former appeared to be quite bored with the company.
It was like a “12 to 3 job or something” for Binny Bansal, who decided to quit the company as soon as Sachin and he emerged with the idea of establishing an eCommerce business.
Sachin and Binny started Flipkart as an online book store from a two-bedroom apartment in Bengaluru’s Koramangala area. They initially started with funding of Rs 4,00,000 from their own pockets.
When Sachin and Binny received a positive response and success in selling books back in 2007, they planned to expand to electronics as well, and by 2014, the company had become one of India’s most valuable startups by reaching a valuation of $1 billion.
When the duo founded Flipkart, online shopping in India was even a distant dream for them, but the hard work and consistency paid off and made Sachin and Binny into widely successful entrepreneurs, which placed them quite ahead in the list of the successful Indian entrepreneurs.
Flipkart – Mission
Flipkart’s mission is to provide a delightful customer experience by being the partner of choice for Indians and to create India’s most customer-centric company.
Furthermore, they also wanted to name their company in such a way that it would be suitable for a wide range of product categories that could also be expanded in the future.
Flipkart means ‘flipping things into a shopping cart’.
The logo of Flipkart was changed twice. There have been several taglines that the company has gone through on different occasions. Some of the popular taglines are:
Ab Har Wish Hogi Poori
Abhi Nahi To Kabhi Nahi
If it’s trendy, it is on Flipkart
Be Trendy, Always
Itne mein, Itnaaaa Milega
Shopping ka naya address
Ab Mehengaayi Giregi
Flipkart – Parent Organization
In August 2018, U.S.-based retail chain Walmart acquired a 77% controlling stake in Flipkart for $16 billion, valuing the company at $20 billion.
With this acquisition, Walmart claimed that the omnichannel retail sector has a huge potential for future growth.
Speaking at Retail India Summit and Expo, Walmart India President and CEO Krish Iyer claimed that
“$16 billion deal to acquire Flipkart has attracted foreign and domestic investors in country’s retail and omni-channel space. The recent investment in Flipkart shows Walmart is committed to the country. We do see a great value in terms of an omnichannel play in the whole process”
Owing to the demonetization, he said that it played a crucial role in the growth of the retail sector by structuring the economy along with the implementation of the GST.
These stakes were further increased to 81.3% towards the end of the same year. Soon after the acquisition, one of the founders of Flipkart, Sachin Bansal, left the company.
This year, Walmart invested $3.5 billion to boost its ownership of Flipkart to 80.5%. Notably, some of Flipkart’s early investors, such as Tiger Global and Accel, divested their stakes by selling them to Walmart.
Walmart Inc. is an American multinational retail corporation that operates a chain of hypermarkets, discount department stores, and grocery stores.
Flipkart – Shareholding
Flipkart’s shareholding pattern as of September 2024, sourced from Tracxn:
Shareholders
Percentage
Walmart
80.8%
Tencent
5.9%
CPP Investments
2.2%
SoftBank Vision Fund
1.4%
Qatar Investment Authority
0.9%
GIC
0.3%
Appaloosa Management
<0.1%
UBS
0.1%
Waverly
1.4%
Microsoft
1.2%
Gamvest
0.9%
WCH
0.1%
Pantai Remis Investment
0.1%
ESOP Management and Trust
<0.1%
Jadoff SPV 5
<0.1%
ESOP Pool
4.5%
Flipkart – Subsidiaries
The subsidiaries of Flipkart are Myntra, Mallers, eBay, Ekart, Jeeves, Mech Mocha, Upstream Commerce, Ugenie, DSYN Technologies, AdIQuity Technologies, Jabong, ClearTrip, Shopsy, Yaantra, Liv.Ai, F1 Info Solutions and Services, Fx Mart, Appiterate, ngpay, Mime360, WeRead, Chakpak, and Sasta Sundar.
Company
Acquisition/Launch Date
Yaantra
Jan 2022
Sasta Sundar
Nov 2021
Shopsy
July 2021
ClearTrip
Apr 2021
Mech Mocha
Nov 2020
Upstream Commerce
Sep 2018
Liv.ai
Aug 2018
F1 Info Solutions & Services
Sept 2017
eBay India
Apr 2017
PhonePe
Apr 2016
Jabong
July 2016
Fx Mart
Sep 2015
Ekart
Sep 2015
Appiterate
Apr 2015
DSYN Technologies
Apr 2015
AdIQuity
Mar 2015
Jeeves
2014
ngpay
Sep 2014
Myntra
May 2014
LetsBuy.com
Feb 2012
ChakPak Digital Catalogue
Nov 2011
Mime360
Oct 2011
Mallers
Oct 2011
WeRead
Dec 2010
Ugenie
Apr 2010
In 2016, Flipkart Group acquired PhonePe. However, in December 2022, Walmart-owned Flipkart and PhonePe declared a full ownership separation, with Flipkart no longer holding any stake in the payments firm PhonePe.
Flipkart works on a B2C business model i.e., a business-to-consumer model. The company initially began with a direct-consumer model, wherein it sold books and some other products.
Today, it has become a marketplace with a huge catalog of products—right from FMCG to electronics and books.
Flipkart claims it has over 80 categories and over a million sellers on board from all across India.
It is an omni-channel service provider that leveraged the same model after the Walmart acquisition of Flipkart. The company earns almost all of its operating revenues from the sale of goods. Flipkart seller login allows vendors to manage their products, track sales, and update listings on the Flipkart marketplace through their seller account.
At Recode’s Code Commerce conference, Binny Bansal, who co-founded Flipkart along with Sachin Bansal, said:
“Sometime in the future, especially with some categories, omnichannel would make a ton of sense. It is definitely something which would be there in the future.
Flipkart has seen a wide range of partnerships throughout the years it has been active. Some of the most prominent of its partnerships are:
Adani Group
The Indian eCommerce marketplace announced a strategic and commercial partnership with the Adani Group on April 12, 2021, to enhance its supply chain and logistics infrastructure.
IIM Sambalpur
The eCommerce major partnered with the Indian Institute of Management, Sambalpur in August 2021, with the aim of supporting and promoting small businesses.
Urbanic
Flipkart partneredwith Urbanic on September 8, 2021, to target young consumers across India.
Hopscotch
Flipkart started collaborating with the leading Indian kids’ fashion brand, Hopscotch on November 25, 2021, to strengthen its kids’ fashion segment.
Pocket FM
The popular audio streaming service, Pocket FM, has partnered with Flipkart on July 26, 2022, which will be a tie-up for its distribution via the famous e-commerce marketplace.
Flipkart shopping has raised $15.3 billion in funding in 29 rounds.
Below are some of the funding details:
Date
Stage
Amount
Investors
May 24, 2024
Corporate Round
$350 million
Google
Jul 31, 2023
Secondary Market
$1.4 billion
Walmart
June 13, 2022
Secondary Market
$264 million
Tencent
January 5, 2021
–
$233 million
Flipkart Pvt. Ltd
July 12, 2021
Private Equity Fund
$3.6 billion
Softbank Vision Fund, Canada Pension Plan Investment Board, GIC, Walmart
September 16, 2020
Corporate Round
$62.8 million
Tencent
July 14, 2020
Corporate Round
$1.2 billion
Walmart
December 3, 2019
Corporate Round
$28.4 million
–
September 10, 2019
Corporate Round
$217 million
Flipkart
September 4, 2019
Secondary Market
$14.5 million
–
January 16, 2019
Corporate Equity
$200.8 million
Flipkart
October 25, 2017
Corporate Round
–
eBay
September 18, 2017
Debt Financing
$133.9 million
SoftBank Vision Fund
August 10, 2017
Secondary Market
$1 billion
SoftBank Vision Fund
Flipkart’s valuation exceeded $40 billion in 2022, and it was preparing for its upcoming public listing.
Flipkart – ESOPs
Flipkart Singapore has expanded its ESOP trust. According to the reports dated March 31, 2022, the company has allotted 21,370 equity shares, the total worth of which is reported to be around $4.4 million (Rs 30.71 crore) to the ESOP trust.
The Indian e-commerce giant already boasts of having the largest ESOP pool among startups of Indian origin.
A recent Longhouse Consulting report claims that Flipkart’s ESOP pool is worth around $2.26 billion (Rs 17,000 crore). It is followed by OYO with a $1 billion pool, Zomato with $745 million, and Paytm with a $604 million ESOP pool.
Amidst a significant development, Flipkart has commenced an impressive ESOP (Employee Stock Ownership Plan) payout amounting to $700 million in July 2023, benefiting around 19,000 of its current and former employees. This move follows Flipkart’s decision to separate full ownership of PhonePe, the Indian digital payments and financial services company. Defying the trend in the current challenging funding landscape for startups, Flipkart’s generous payout demonstrates its commitment to recognizing and rewarding its workforce while also aiming to retain top talent in a fiercely competitive market.
Flipkart – Growth and Revenues
From its bootstrapped beginnings to the success Flipkart is witnessing today, it proudly talks about its success.
Though the company looked a bit shaky with the arrival of US-based Amazon in the Indian markets, the danger is no longer looming today with the assertion of Kalyan Krishnamurthy as the group CEO and the acquisition of Walmart of Flipkart.
Flipkart India is currently the leading eCommerce site in India.
The Walmart-owned Indian eCommerce company also clocked an impressive 64% market share when last recorded during the festive sales in October 2021.
2Gud RoadMap for Refurbished Products
Flipkart-owned 2Gud for the refurbished market will play a major role in driving budget shoppers to premium products. Although, with its great accreditation for shopping experience refurbished market will gain trust quickly among budget buyers and refurbished sellers.
Moreover, Flipkart will also keep a strict quality check on refurbished items so that the buyers use their products hassle-free.
However, its 10-day easy return policy will be super beneficial for the refurbished shopping market. Initially, 2Gud started the refurbished market with mobiles, laptops, tablets, smartwatches, and accessories and plans to introduce 40+ categories in the giant refurbished market “2Gud”.
2GUD has expanded its category offerings to cater to style-conscious Indians who are looking for value in 2019. Targeted at Tier II and Tier III markets, 2GUD plans to evolve from a refurbished-only platform to a complete customer offering with categories such as affordable fashion, accessories, and home.
As part of a larger strategy to expand the benefits of e-commerce to the next 200 million customers, 2GUD, which is present across 40+ categories, will now expand to 150+ categories. 2GUD is focusing on making the latest trends across fashion, home, decor, kids, and other categories affordable for the Indian consumer.
2GUD predicts that the refurbished goods market, on gaining the trust of users, would go on to become a 20 billion dollar industry in the next half-decade. To be a leader in this segment of e-commerce in India is not an easy task, given the “trust issues” that continue to persist in this part of the pie.
Recently, 2GUD upgraded its m-site, making it available as a mobile app as it looks to cater to a larger set of audiences and shoppers. 2GUD has served close to a million customers from over 3,000 cities across India and has over 1,000 registered sellers.
Officially, eBay.in ended operations on August 14th, 2018. In the meantime, eBay is all set to relaunch its platform with cross-border trade offers exclusively. The Walmart-owned company has enormous growth prospects and has been doing great in its own way.
Flipkart – Big Billion Sale Success
The delivery of around 1 crore shipments within 5 days of the Big Billion Day sale has created a lasting mark on the eCommerce industry. Flipkart has seen a 10X growth from the last festive Big Billion sale. Out of the 1 crore, around 35 lakh deliveries were via Kirana Partners. Flipkart online shopping provides a convenient platform for buying electronics, fashion, home goods, and more from the comfort of your home.
The number of crorepati sellers went up by 1.5 times, and the number of lakhpati sellers rose by 1.7 times.
In the Big Billion Days sale of 2021, over 3.75 lakh sellers joined hands to offer the best products online to their customers via Flipkart. This helped the customers save a whopping Rs 11500 crore during the “biggest Indian sale ever. The platform witnessed around 110 orders placed per second that varied across various products, including electronics, fashion, books, furnishing, etc., in its Big Billion sale of 2020.
Furthermore, the company is also seeing around 100x week-on-week growth on its social commerce model, which helps in assisted shopping and charges commission from advertisements and sellers working through its platform. This is why the company is striving to get a bigger share of the grocery ecosystem in the upcoming months.
Here are some growth highlights of the brand at a glance:
Flipkart’s valuation is $37 million as of May 2024.
Flipkart is a market leader.
It is one of the pioneering ecommerce marketplaces in the country.
Flipkart presently boasts of having more than 375K sellers/resellers.
The company is serving 160 million+ users in the country.
Flipkart – Financials
Flipkart has shown consistent revenue growth from FY20 to FY24, crossing INR 70,000 crore in FY24. However, the company continues to report substantial losses, largely due to rising operational expenses.
Particulars
FY24
FY23
FY22
FY21
FY20
Total Revenue
INR 70,844 crore
INR 56,012.8 crore
INR 51,175.7 crore
INR 43,349.1 crore
INR 34,610.1 crore
Expenses
INR 75,038.2 crore
INR 60,858.5 crore
INR 54,580 crore
INR 45,793.9 crore
INR 37,760.4 crore
Profit/Loss
INR -4,194.2 crore
INR -4,845.7 crore
INR -3,413 crore
INR -2,445.6 crore
INR -3,150.3 crore
Flipkart Financials FY24
Flipkart’s revenue grew over INR 14,800 crore from FY23 to FY24, but losses remained high at INR 4,194.2 crore, though slightly reduced compared to FY23. In 2023, Flipkart’s operating revenue was INR 55,824 crore, while its total expenses amounted to INR 60,859 crore, resulting in a loss of INR 4,897 crore. In 2024, operating revenue grew to INR 70,542 crore, and expenses increased to INR 75,038 crore, with a reduced loss of INR 4,248 crore.
Based on data received by business intelligence platform Tofler, Flipkart India recorded a 45% increase in net loss for 2022–2023 to INR 4,890.6 crore in FY23 from INR 3,371.2 crore in FY22. Consolidated sales for the Walmart-owned business in 2022–2023 were INR 56,013 crore, a 9% increase over the prior fiscal year FY22.
Flipkart Revenue Breakdown (FY24–FY23)
Particulars
FY24
FY23
Revenue from Operations
INR 70,541.9 crore
INR 55,823.9 crore
Other Income
INR 302.1 crore
INR 188.9 crore
Total Revenue
INR 70,844 crore
INR 56,012.8 crore
Revenue from operations increased by INR 14,718 crore in FY24, driven by stronger sales. Other income also rose marginally, adding to the overall revenue growth.
Flipkart Expense Breakdown (FY24–FY23)
Particulars
FY24
FY23
Purchases of Stock-in-Trade
–
INR 59,816.6 crore
Employee Benefit Expense
INR 684.4 crore
INR 639.2 crore
Finance Costs
INR 299.8 crore
INR 169.7 crore
Other Expenses
INR 74,054 crore
INR 499.6 crore
Total Expenses
INR 75,038.2 crore
INR 60,858.5 crore
Expenses surged in FY24 mainly due to a sharp rise in “Other Expenses” INR 74,054 crore, overshadowing stable personnel and finance costs.
The company’s reported expenses for the fiscal year 2024 were INR 75,038 crore, up from INR 60,859 crore in FY23. This covered expenses for things like buying trade shares, paying employee benefits, and financing-related fees.
The company started a unique feature of the value proposition by offering 24 x 7 support to the customer. Flipkart charges a certain amount or percentage of commission from the sellers, which varies depending on the type of product and the kind of sales. This may range from 5% to 20%, excluding taxes and discounts.
Flipkart Profit/Loss (FY24–FY23)
Flipkart’s net loss narrowed from INR 4,845.7 crore in FY23 to INR 4,194.2 crore in FY24 despite growing expenses, suggesting better cost absorption with increased revenue.
Quick Summary: Comparative Insights (FY24 vs FY23)
Revenue Growth: INR 14,831 crore increase in total revenue (up 26.5% YoY).
Other Income Growth: Increased from INR 188.9 crore to INR 302.1 crore, a 60% jump.
Net Loss Reduction: Reduced loss by INR 651.5 crore YoY.
Expenses Spike: Expenses grew by INR 14,179.7 crore, largely due to unclassified “Other Expenses”.
Business Implication: Flipkart’s scale-up continues with improved topline and narrowed losses, but sustainability depends on controlling other operating costs.
Flipkart – Product And Service
Flipkart some of the prominent products and services are mentioned below:
Flipkart Minutes
Over the past two months, Flipkart has shortened its delivery times in response to growing consumer demand for quick delivery in non-metropolitan areas and greater competition from quick commerce companies like Blinkit and Zepto.
Furthermore, Flipkart has started offering free same-day delivery of goods in 20 locations across a variety of categories, as per a news report from March 11, 2024.
Flipkart Labs
Flipkart Labs is one of the latest initiatives launched by Flipkart on April 28, 2022, with a view to foraying into the Web3 and Metaverse. Based in Bengaluru, Flipkart Labs aims to build an in-house innovation capability to fuel and shape the future of customer-centric e-commerce in India.
Flipkart Health+ App
Flipkart launched its new Health+ App, which will focus on empowering users with easy access to medicines, healthcare products, and services across India, on April 6, 2022.
Flipkart, the renowned e-commerce platform, introduced an app-in-app fashion segment called SPOYL on August 17, 2023, with a specific focus on catering to the preferences of Gen Z consumers. This dedicated vertical within the Flipkart app will showcase an extensive selection of over 40,000 products spanning various categories, including western wear, accessories, and footwear.
Flipkart – Investments
Being a pioneering eCommerce business that is hailed as a fast-growing company, Flipkart has seen numerous investments. Flipkart has made 35 investments, of which 30 are lead investments. The most recent investment was made on April 4, 2023, when Flipkart Marketplace raised $358.2 million.
Here’s a look at the most recent investments by Flipkart:
Company Name
Date of Investment
Amount
Funding Round
Lead Investor
Flipkart Marketplace
April 4, 2023
$358.2 million
Corporate Round
Yes
Flipkart Marketplace
September 19, 2022
$30 million
Corporate Round
Yes
Hyperface
July 13, 2022
$ 9 million
Seed Round
–
Shadowfax
July 11, 2022
$9.75 million
Series E
Yes
FinBox
June 20, 2022
$15 million
Series A
–
G.O.A.T Brand Labs
April 20, 2022
$50 million
Convertible Round
–
Flipkart Marketplace
March 31, 2022
$553 million
Corporate Round
Yes
Flipkart Health
March 31, 2022
$143 million
Corporate Round
Yes
Myntra
March 25, 2022
$116 million
Corporate Round
Yes
Ninjacart
December 12, 2021
$145 million
Series D
Yes
G.O.A.T Brand Labs
July 25, 2021
$16.72 million
Series A
Yes
PhonePe
December 14, 2020
$19.29 million
Corporate round
Yes
Universal Sportsbiz
November 6, 2020
–
Series F
Yes
Aditya Birla Fashion and Retail
October 23, 2020
$192.92 million
Post-IPO Equity
Yes
Ninjacart
October 12, 2020
$30 million
Corporate Round
Yes
Arvind Youth Brands
July 9, 2020
–
Corporate Round
Yes
PhonePe
April 27, 2020
–
Corporate Round
Yes
PhonePe
February 26, 2020
–
Corporate Round
Yes
Ninjacart
December 11, 2019
–
Series C
Yes
Flipkart – Mergers and Acquisitions
Flipkart has acquired 18 companies to date, as of March 2022. ANS Commerce was the latest company that Flipkart acquired in an undisclosed deal on April 19, 2022, in order to strengthen its eCommerce ecosystem.
From having @Flipkart as our seed investor along with Blume to now joining hands to build entertainment at scale for India – it’s been a quite a full circle. Feeling immense gratitude towards all @MechMocha team members, investors, advisors and partners. https://t.co/77bhfReGKN
Challenges have always been face-to-face with India’s most popular e-commerce player, but Flipkart has always come out victorious. One recent update has it that Flipkart and its archrival, Amazon, have been involved in alleged cases of competition law violations.
This is why CCI or the Competition Commission of India, raided a few seller offices of both Flipkart and Amazon to probe into the same after the Supreme Court gave its nod for it. The Walmart-owned company as well as that founded by Bezos were linked with multiple incidents of favoring their preferred sellers on their respective platforms.
Sushant Singh T-shirts Sales Controversy
Boycott Flipkart went trending on Twitter on July 26, 2022, after numerous Flipkart users allegedly accused Flipkart of “Cheap marketing”, when they found tees containing the image of Sushant Singh Rajput with a message that read “Depression is like drowning”.
According to these users, who were Sushant fans, these t-shirts with the message indicated that Sushant Singh died by suicide, while this has not been clearly identified. Some others also identified this thing as a “smear campaign” against the late actor.
Flipkart Subsidiary Cleartrip’s Data Breach
Cleartrip, which is owned by Flipkart now, has experienced data breaches. The company confirmed on July 18, 2022, in an email sent to its customers that the information of some of the customers was compromised, but no sensitive information was leaked.
Flipkart-owned Cleartrip has already reached out to proper authorities and would resort to appropriate legal action systematically. The acquisition of Cleartrip was via a distress sale after the startup’s growth plummeted to astonishing levels as the COVID-19 pandemic broke out. The company had earlier thrived another data breach in 2017 when a group called Turtle Squad defaced it for a few minutes.
Flipkart India competes primarily with Amazon’s Indian subsidiary and the domestic rival Snapdeal. In FY23, Flipkart showcased resilience among e-commerce leaders, securing a substantial 48% market share and effectively protecting its position.
Flipkart is significantly dominant in the sale of apparel (a position that was bolstered by its acquisitions of Myntra) and was described as being “neck and neck” with Amazon in the sale of electronics and mobile phones.
To list some of Flipkart’s competitors, they would be:
Currently, both the founders, Sachin and Binny Bansal don’t serve Flipkart anymore, but the brand continues to stand tall despite all the challenges. Flipkart has been one of the most prominent faces in the Indian startup ecosystem.
Flipkart has never been afraid of taking risks, and that is one of its key advantages. From books to electronics and household products and whatnot, it has evolved a lot in the past years and will continue to expand irrespective of the change in shareholders or competitors.
Walmart’s major investment in Flipkart means better service and market presence for the latter. Advancements in eCommerce, a wider range of products, better products, and upgraded integrations with small businesses are just a small chunk of the innovations we can expect from Flipkart in the coming time.
FAQs
What is Flipkart?
Flipkart is an Indian e-commerce company that sells a wide range of products, including electronics, fashion, and home goods. It was founded in 2007 and is one of the largest online retailers in India.
Is Flipkart the first online shopping company in India?
No, Flipkart is one of the first online shopping companies in India but not the first online shopping company in India. It was Fabmart.com, founded in 1999 by K Vaitheeswaran, which was India’s first online shopping company.
Who is the owner of Flipkart?
Walmart, an American multinational retail corporation is the Parent Organisation of Flipkart. Flipkart was founded by Sachin Bansal and Binny Bansal in 2007.
Who are Flipkart founders?
Sachin Bansal and Binny Bansal founded Flipkart in May 2007 in Bengaluru, India.
What is the Flipkart CEO’s name?
The name of the Flipkart CEO is Kalyan Krishnamurthy.
What is the origin country of Flipkart?
Flipkart was founded by Sachin Bansal and Binny Bansal and is headquartered in Bengaluru, India.
How did Flipkart start?
Flipkart was started in 2007 by Sachin Bansal and Binny Bansal, two former Amazon employees, in Bengaluru, India. It began as an online bookstore, operating from a small apartment. Their focus on fast delivery and customer service helped them quickly gain popularity, eventually expanding into electronics, fashion, and more to become one of India’s biggest e-commerce platforms.
When was Flipkart founded?
Flipkart was founded in October 2007 by Sachin Bansal and Binny Bansal.
Is Flipkart a product based company?
Though Flipkart was earlier solely a product-based company, it is now operating as a product and services-based company.
What is the tagline of Flipkart?
“Ab Har Wish Hogi Poori” is the tagline of Flipkart.
Where is the headquarters of Flipkart located?
The Flipkart headquarters is in Bangalore, India.
What are Flipkart products and services?
Flipkart was earlier solely an eCommerce operator that offered a wide array of products from home essentials to electronic gadgets to groceries and more. However, with the latest introduction of the cleaning and repairing services, Flipkart has already started its foray into the at-home services segment, to rival Urban Company.
Who is Flipkart owner name and country it originated from?
Flipkart is owned mainly by Walmart Inc., a U.S.-based retail giant that acquired a majority stake in 2018. The company is officially registered in Singapore but operates primarily from India, where it was originally founded.
Walmart International is approaching Flipkart‘s expansion cautiously, giving market share and long-term potential precedence above immediate financial gain.
Kathryn McLay, president and CEO of Walmart International, stated during the 41st annual strategic decisions conference hosted by Bernstein that the company is dedicated to growing Flipkart in a sustainable manner instead of aiming for quick profits.
Walmart International is thrilled with their (Flipkart) expansion, McLay said. The business does not prioritise profitability to the point that it would compromise future expansion and market share. Therefore, the brand will reach profitability at the appropriate moment when you balance all of that.
McLay added further that 20% of the country’s e-commerce business is currently made up of rapid commerce. Quick commerce is on a “50% growth trajectory” nationwide, she claimed, and Walmart intends to “play” in the market with vigour.
Focusing on 15 Minute Delivery
McLay discussed Flipkart’s entry into the fast commerce space, stating that whereas the e-commerce site “used to deliver at best within a day” a year ago, it now makes a “15-minute promise”. Flipkart now has 250 fulfilment hubs that deliver goods “within minutes”, she continued. “It was a 1-2 day promise,” McLay said.
Although the brand can occasionally deliver in as little as three minutes, the company is now required to deliver within fifteen minutes.
For her, those powers are, you know, crazy. However, the business is currently investing in a new, developing sector (rapid commerce) as it continues on its path to profitability.
Lessons Learned From China
In order for the Indian team to be able to fulfil goods in less than 15 minutes, McLay stated that the US-based retailer has been sharing lessons learnt from operations in China.
“The CEO of Flipkart asked me where I might find information on speed in Walmart Enterprise when we noticed an increase in swift commerce. I also directed him to China. He sent a crew over then, and they comprehended and gained knowledge from that,” McLay continued.
Flipkart then refined its rapid commerce business model by iterating on how to create an “equation” around square footage, closeness of dark stores, number of orders, number of delivery partners, and speed, according to the CEO of Walmart International.
She stated, “And they (Flipkart) will continue to refine that model, and then they will pass those learnings back to China and other markets.”
Regarding the distinction between Walmart’s e-commerce activities in China and India, the top Walmart official stated that, in contrast to its platform in China, Flipkart only functions as a 3PL online company and has digital advertising.
She added that the fashion marketplace’s unique selling proposition is customisation and hyper-personalisation, calling Myntra “one of the hidden gems” in the Flipkart business.
According to a media source, the US retail giant Walmart intends to eliminate some 1,500 corporate positions as part of a reorganisation initiative to streamline its business practices.
Divisions like Walmart Connect, its advertising business, e-commerce fulfilment in US stores, and worldwide technology operations will all be impacted by the layoffs.
According to a memo seen by a media house, “We must sharpen our focus to accelerate our progress delivering the experiences that will define the future of retail.”
A media outlet was previously informed by a source with knowledge of the matter that the biggest retailer in the world would lay off about 1,500 employees and replace them with new positions that better fit its long-term objectives.
Walmart Currently Employs 2.1 People Globally
Walmart employs over 1.6 million people in the US and 2.1 million worldwide, making it the largest private employer in the nation, according to its website. Given that the company’s supply chains have been disrupted and costs have increased due to President Donald Trump’s trade war, the action comes after another significant announcement to hike prices on a few products by the end of May.
Interestingly, it is the biggest importer in the nation, importing almost 60% of its goods from China, mostly toys, electronics, and apparel. The company is happy with the progress the [Trump] administration has made on tariffs from the levels that were announced in early April, but they’re still too high, CFO John David Rainey stated in a recent interview with a media source.
As part of a plan to move employees to its main centres in California and Arkansas, the corporation laid off employees and closed its North Carolina headquarters in February.
“The brand values and culture are strategic differentiators for us as a company, and they are fostered by being together,” stated Donna Morris, Walmart’s chief people officer, in an internal memo that US media outlets were able to get in February.
Layoffs have Become a New Normal for Bigger Players
This layoff announcement coincides with employment cuts by a number of multinational corporations, such as Amazon, Intel, and Goldman Sachs. Such developments are happening mainly owing to the growing impact of artificial intelligence (AI) and uncertainties in the global economy. Intel is getting ready for a massive restructure following a large financial loss in 2024.
Similarly, Amazon also plans to eliminate about 14,000 administrative roles in order to save $3 billion yearly.
Companies are increasingly focusing on cost optimisation and automation as a result of the rapid growth in AI adoption. This adoption is resulting in job losses across a number of industries.
Goldman Sachs is also getting ready to lay off employees, with intentions to trim staff by 3–5% after an annual performance review. About 150 junior banker positions were recently cut by Bank of America; nevertheless, the majority of impacted workers were offered opportunities outside of investment banking.
India, with its booming middle class, massive population, and one of the fastest-growing economies in the world, has always been a dream destination for global brands looking to expand their footprint. From food chains and fashion retailers to automobile giants and tech players, the lure of tapping into over a billion potential consumers is hard to resist. Getting your company into the Indian market isn’t as easy as setting up shop or running glitzy ads.
Why does this happen? Sometimes it’s poor timing. Other times, it fails to adapt products, marketing, or pricing to local realities. But almost always, it’s a reminder that in India, cultural relevance and customer insight aren’t optional; they’re essential.
Let’s take a deep dive into 10 global brands that failed in India and unpack the real reasons behind their downfall. Each case teaches why even the biggest names in business can’t afford to underestimate the Indian market.
Once positioned as the “king of good times,” Kingfisher Airlines, founded by liquor baron Vijay Mallya, was India’s most luxurious airline when it launched in 2005. Plush interiors, gourmet meals, and attractive branding earned the airline quick popularity. However, a combination of reckless expansion, high operating costs, and poor debt management caused it to spiral into a financial crisis.
By 2012, Kingfisher had grounded operations, leaving behind unpaid staff, angry creditors, and a massive INR 9,091 crore debt trail.
Why did Kingfisher Airlines fail?
Kingfisher Airlines failed due to poor financial planning and reckless expansion without sustainable revenue. Its focus on luxury added to high operating costs, which couldn’t be maintained in a price-sensitive market. On top of that, massive debt mismanagement led to a complete financial collapse.
Bisleri, a household name synonymous with bottled water in India, once tried to tap into the lucrative carbonated soft drink market with Bisleri Pop. Launched with high hopes, the beverage came in multiple flavours and aimed to compete with global giants like Coca-Cola, Pepsi, and even local rivals like Thums Up and Sprite.
However, despite its brand recognition, the product fizzled out quickly. The market was already saturated with strong brand loyalty, aggressive advertising, and massive distribution networks. Bisleri Pop lacked the unique appeal or innovation to stand out on retail shelves. Moreover, marketing efforts failed to create the kind of consumer connection that its rivals had already mastered.
Why did Bisleri Pop fail?
It failed due to no clear uniqueness, tough competition from well-loved brands, and weak marketing that didn’t create a strong brand recall among consumers.
Chevrolet
When General Motors rolled Chevrolet into the Indian market in 2003, it aimed to bring American engineering flair to one of the world’s fastest-growing automobile markets. With global success in its rearview mirror, GM had big plans for India. It launched a range of cars, including the Spark, Aveo, Beat, Cruze, and Tavera, all intended to woo Indian consumers across budget and premium segments.
But instead of carving out a strong foothold, Chevrolet ended up skidding off course. Despite an aggressive launch and promotional campaigns, the brand quickly found itself in a traffic jam of problems. Indian consumers, who are extremely value-conscious, found Chevrolet cars overpriced compared to local alternatives like Maruti Suzuki, Hyundai, and Tata Motors. Even though the cars came with solid build quality, they lacked the fuel efficiency and affordability that Indian buyers sought.
In 2017, General Motors finally hit the brakes and announced its exit from the Indian passenger car market, deciding instead to focus on exports from its Talegaon plant (which it later sold to Great Wall Motors and then to Hyundai).
Why did Chevrolet fail?
Chevrolet failed because of a misaligned product strategy that didn’t cater to local preferences, poor localization of features, and a broken after-sales network that left customers frustrated.
Tata Nano
The Tata Nano was launched with the vision of providing an affordable car to the masses, ranging between INR 1.45 lakh and INR 2.65 lakh. With this bold move, Tata Motors wanted to redefine urban mobility and make car ownership accessible to the lower-middle class.
The Nano’s biggest strength was its ultra-low price, & ironically became its biggest weakness. Indian consumers, driven by aspirations and status, didn’t want to own something known as the “cheapest car.”
Safety concerns also tainted the Nano’s reputation. Several instances of the car catching fire, even though rare, and later addressed, went viral and damaged consumer trust. By 2018, Tata Motors stopped production, and the Nano quietly exited the roads it once promised to dominate.
Why Did Tata Nano Fail?
The negative perception of being the “cheapest car,” combined with safety concerns and limited features, hurt its appeal. Production setbacks and a lack of consumer trust led to its quiet exit from the market.
Bloomberg TV India
Launched with the global muscle of Bloomberg and a sharp focus on financial news, Bloomberg TV India aimed to become the go-to channel for India’s business-savvy audience. But despite quality content, it failed to gain traction.
The niche English-speaking business audience was already loyal to players like CNBC-TV18 and ET Now.
Despite high-quality global content, it remained a niche player. The English-speaking business audience was limited. With low viewership came lower ad revenue, which couldn’t sustain the channel’s high operating costs.
In 2016, Bloomberg pulled the plug on its Indian partnership, and the channel was rebranded as BTVi (Business Television India). But without the Bloomberg brand and facing the same structural challenges, BTVi couldn’t survive either. It eventually shut down operations in August 2019, marking the end of the road.
Why did Bloomberg TV India fail?
The failure of Bloomberg TV India wasn’t due to a lack of content quality, but rather a combination of limited market size, poor brand positioning, and high operational costs that couldn’t be sustained over time.
IKEA opened its first Indian store in Hyderabad in 2018, bringing with it its famous Swedish food menu. The IKEA cafeteria, known globally for its meatballs, mashed potatoes, and smoked salmon, aimed to offer Indian shoppers a taste of Scandinavian cuisine with a side of affordability and novelty.
While the concept generated massive curiosity in the beginning (with long queues for both furniture and food), the excitement around IKEA’s lunch offerings started to fade. The foreign flavours didn’t quite match Indian palates, and dishes like Swedish meatballs or smoked salmon wraps were seen as too bland, expensive, or unfamiliar for many local visitors.
To appeal to the Indian audience, IKEA later added local favourites like biryani, samosas, and kebabs to the menu. Nevertheless, early disconnects in understanding local food preferences affected their momentum. Food quality inconsistencies and long wait times also dampened the dining experience for many.
Why Did IKEA’s Lunch Fail?
IKEA’s food strategy in India stumbled due to a cultural mismatch in cuisine, initial lack of localization, and unmet expectations around price and taste.
Axe Effect
The Axe Effect, a line of male grooming products by Unilever, became globally famous for its provocative and humorous advertising campaigns. In the West, ads featuring men attracting women with the spray were a hit. However, when Axe entered markets like India, its humour didn’t resonate.
The overtly sexual content and objectification of women did not resonate with Indian cultural norms, leading to criticism from various quarters. In response to the growing disapproval, Unilever announced a global shift in its advertising strategy, aiming to move away from sexist stereotypes and promote more inclusive messaging.
Why Did Axe Fail?
The cultural insensitivity and controversial advertising didn’t resonate with Indian values, and the brand failed to adapt its marketing strategies to local sensibilities, resulting in negative reactions.
Walmart
Walmart’s ambitious foray into India in 2007, through a joint venture with Bharti Enterprises, aimed to tap into the country’s vast retail market. However, the venture faced significant challenges that hindered its success.
India’s complex foreign direct investment (FDI) regulations posed a significant barrier. Requirements such as sourcing 30% of products from small and medium enterprises and investing a minimum of $100 million in new facilities, with half allocated to backend infrastructure, created operational difficulties for Walmart.
These factors, combined with internal challenges and policy uncertainties, led to the dissolution of the Walmart-Bharti joint venture in 2013.
Why Did Walmart Fail?
Walmart couldn’t succeed due to regulatory complexities, a disconnect with Indian shopping habits, and operational difficulties in adapting to a very different retail environment.
American Apparel
American Apparel, renowned for its provocative advertising and edgy fashion, entered the Indian market in 2010 with high expectations. However, the brand’s overtly sexualized marketing campaigns clashed with India’s conservative cultural norms, leading to backlash from various groups.
Additionally, the high price point for clothing perceived as “basic” deterred budget-conscious Indian consumers. These challenges contributed to the brand’s inability to gain widespread acceptance, ultimately leading to the shutdown of its Indian operations in 2016.
Why Did American Apparel Fail?
It failed due to a cultural mismatch, controversial branding that didn’t resonate with Indian values, and a pricing strategy that didn’t appeal to the cost-sensitive Indian market.
eBay
eBay was one of the earliest global e-commerce giants to enter India back in 2004. Riding on its global success, the brand tried to replicate its C2C (consumer-to-consumer) marketplace model in India. But there was one big problem: Indian consumers were still warming up to the idea of trusting strangers online.
While rivals like Amazon and Flipkart poured investments into building robust logistics, easy return policies, and reliable customer experiences, eBay took a more hands-off approach. The result? Frustrated customers, delayed deliveries, and a trust gap that widened with time.
By 2017, eBay India was acquired by Flipkart in a strategic deal, but even that couldn’t breathe new life into the brand. Eventually, eBay exited the Indian market for good in 2018.
Why Did eBay Fail?
eBay failed due to poor logistics investment, a weak customer experience, and a business model that didn’t match Indian consumer habits.
Brands like Kingfisher Airlines, Bisleri Pop, Chevrolet, Tata Nano, Bloomberg TV India, IKEA, Axe, Walmart, American Apparel, and eBay failed in India.
Why did Kingfisher Airlines fail in India?
Kingfisher Airlines collapsed due to poor financial management, high debt, and operational inefficiencies, despite strong brand visibility.
Why didn’t Walmart succeed in India?
Walmart struggled with India’s complex retail regulations and couldn’t establish its full-scale retail operations before shifting to e-commerce.
PhonePe, owned by Walmart, has selected four investment banks as advisors as India’s leading digital payments platform aims to enter the domestic tech IPO sector, targeting a valuation of up to $15 billion. As per a media report, PhonePe plans to initiate the IPO process in the first week of March and has engaged Kotak Mahindra Capital, JP Morgan, Citi, and Morgan Stanley. Additional advisors may be incorporated at a subsequent phase if necessary.
A media report corroborated this information and indicated that the IPO would likely consist of both main and secondary share issuances, with the listing anticipated in FY26. During a kick-off meeting, the issuing firm outlines essential strategies and the timeline for the IPO, as well as delineates the roles and responsibilities of the assembled advisors.
The media report indicates that this is anticipated to be a significant tech IPO from a market leader, with the issue size projected to exceed one billion dollars. These are preliminary stages, and the plans may evolve based on market conditions; nonetheless, currently, the firm intends to forgo potential profits for investors and is targeting a valuation of up to $15 billion.
Major Investors in PhonePe
The company stated in its FY24 annual report that PhonePe has garnered an impressive array of distinguished investors, who have collectively invested over INR 18,000 crore in the organisation to date. Walmart holds the largest holding, with additional investors including Microsoft, General Atlantic, Tiger Global, Ribbit Capital, TVS Capital, Tencent, and the Qatar Investment Authority. Notably, the share price of the publicly traded fintech counterpart One 97 Communications Limited, which owns and operates the Paytm brand, has increased by 72.28% during the past year.
Strategy to go Public
On February 20, PhonePe announced the initiation of preparatory measures for a prospective initial public offering (IPO) to be listed on Indian exchanges. Doug McMillon, CEO of Walmart, announced that PhonePe, Walmart’s fintech subsidiary, is preparing for an IPO in India. PhonePe’s staff has long desired to become a public company, and Walmart is enthusiastic about initiating these preliminary steps. PhonePe re-established its domicile from Singapore to India in December 2022. The corporation announced the establishment of a definitive corporate structure, designating each of its new non-payment enterprises as wholly owned subsidiaries.
The company stated that PhonePe’s robust revenue and profit development throughout its varied business portfolio, as outlined in its FY23-24 annual report, renders this an opportune moment to initiate preparations for a public offering. Located in Bengaluru PhonePe is the preeminent digital payments entity in the country, commanding approximately 48 percent of the market share in the Unified Payments Interface (UPI), a real-time mobile payments platform operated by the National Payments Corporation of India (NPCI). Google Pay has the position of the second largest competitor, commanding a market share of approximately 37 percent.
The NPCI previously specified that no single non-bank third-party application may possess more than 30 percent of the market share, aiming to foster competition and mitigate the duopoly situation.
Nevertheless, the organisation had to prolong the deadline twice, extending it by two years to prevent discomfort to customers. The RBI said in a circular on December 31 that, taking into account various variables, the deadline for compliance of current TPAPs exceeding the volume cap is extended by two years, till December 31, 2026.
With ambitions to list on Indian stock exchanges, fintech business PhonePe said on 20 February that it has started preparing for the start of its initial public offering (IPO). According to a press release from PhonePe, the company, which will mark its tenth anniversary this year, provides cutting-edge financial services and technological solutions to hundreds of millions of users. Having been established in India and being a pioneer in the country’s fintech sector, PhonePe has long hoped to go public, the statement further stated. After moving from Singapore to India in December 2022, PhonePe created a distinct corporate structure and made all of its new non-payment companies fully owned subsidiaries.
Why it is the Right Time to Go Public?
The release stated that now is a good time to be ready for a public offering because of PhonePe‘s robust top-line and bottom-line growth throughout its varied business portfolio, as reported in its FY23-24 annual report. Its revenue surpassed INR 5,000 crore in FY 23–24, increasing 74% year over year and making adjusted PAT positive (PAT less expenses for Employee Stock Options, or ESOP). In contrast to the INR 738 crore loss for FY 22–23, the group recorded an adjusted PAT of INR 197 crore for FY 23–24. Additionally, the standalone payments company reported an adjusted PAT of INR 710 for FY23–24, as opposed to a loss of INR 194 crore for FY22–23. PhonePe is licensed to operate a wide range of operations, including stock broking, insurance broking, prepaid instruments, and payment aggregators.
Investors of PhonePe
The company’s 2024 annual report states that prominent investors have contributed INR 18,000 crore to PhonePe. According to PhonePe’s annual report, the company’s roster of investors includes some of the most recognisable strategic investors, sovereign funds, and private equity investors worldwide, led by Walmart Inc., its largest shareholder. August 2016 saw the release of the PhonePe digital payments app. By January 2025, PhonePe boasted a network of over 4 crore merchants accepting digital payments and over 59 crore lifetime registered users. Additionally, PhonePe handles more than 31 crore transactions every day, with a total payment value (TPV) of more than INR 145 lakh crore annually.
IPO Getting More Popular Among Startup Sector
Due to a robust IPO market and a resurgence of investor interest in tech equities, a number of technology businesses intend to go public in 2025. Lenskart, an eyeglasses startup, has contacted investment banks to present for the mandate for its possible initial public offering (IPO), which may raise $1 billion. Groww, a stock broker, had selected five investment banks for a $1 billion initial public offering.
In the near future, startups like SoftBank-backed OfBusiness, contract maker Zetwek, and financial unicorn Pine Labs hope to raise $1 billion through initial public offerings (IPOs). Up to 25 firms hope to debut on the public market in 2025. This comprises companies that aim for $500 million initial public offerings (IPOs), such as edtech company PhysicsWallah, AI unicorn Fractal, construction materials portal Infra.market, and leader in rapid commerce Zepto.
The leading digital payments company, PhonePe, has cancelled its collaboration with Juspay, a payment orchestration platform, stating that it intends to integrate payment solutions for its merchants directly. With this change, the fintech company, which is sponsored by Walmart, will be able to provide its merchant clients with an integrated payment flow from transaction origination to final settlement.
More than 40 million retailers are part of the Bengaluru-based company’s network. One of PhonePe’s primary functions as a payment aggregator is to offer its merchants best-in-class success rates via its solutions. According to a statement from a PhonePe representative, the company has chosen not to sell its solutions through any payment orchestration platforms since it can consistently accomplish this for merchants that are directly integrated with the business.
Opting for Direct Integrations
The spokesman also stated that the business will only use direct integrations in the future to provide its solutions to retailers. In February of this year, Juspay, an online payment aggregator (PA), was given the final approval to function as a PA. The main goal of partnerships between digital payment firms and payment orchestration platforms, including payment aggregators, is to increase transaction success rates.
These platforms assess available gateways and procedures, taking into account a number of factors that could affect a transaction’s success, including reliability, prices, and speed. At any given moment, they direct transactions via the most effective payment gateway. In essence, the platform is in charge of rerouting the transaction to a different payment gateway in the case that the primary gateway goes down, avoiding service interruptions.
Juspay Largest Payment Orchestration Platforms in India
According to a media report, Juspay, which is supported by Softbank, makes up about 15% of PhonePe’s payment gateway business. It is one of the biggest platforms for payment orchestration in the nation. As of March 31, about 88% of the company’s revenue came from its payment platform integration division. If other payment platforms decide to follow suit and break up their partnerships with payment orchestration platforms, this might have an effect.
But in February of this year, Juspay also obtained the authorisation to function as a payment aggregator. It might soon begin to compete with businesses it previously collaborated with, like PhonePe and RazorPay.
PhonePe is on the Rise
In 2023, PhonePe raised around $1 billion from investors including Tiger Global, Walmart, and General Atlantic. Together with efficient cost control, this large investment enabled PhonePe to reduce its losses in FY24 and surpass INR 5,000 crore in revenue.
According to the company’s consolidated annual report, which is available on its website, PhonePe’s operating revenue increased by 73.8% to INR 5,064 crore in the fiscal year that ended in March 2024. Payment service revenue continued to be PhonePe’s main source of income, but a $195 million funding round helped the company generate an extra INR 661 crore in interest income, mostly from investments and deposits. As a result, PhonePe’s overall revenue increased from INR 3,085 crore in FY23 to INR 5,725 crore in FY24.
Employee perks accounted for 46.45% of total expenses for tech company PhonePe, up 16.4% from INR 3,096 crore in FY23 to INR 3,603 crore in FY24. Of the INR 1,876 crore in ESOP expenses included in this number, only INR 288 crore were paid in cash; the remaining amount was paid in non-cash. Payment processing fees increased 74.8% to INR 1,166 crore in FY24, in tandem with its expansion. Moreover, overall costs increased by 31.3% to INR 7,756 crore in FY24 due to expenditures for advertising, IT, licenses, legal, and other overheads.
The purchase of a portion of Flipkart, a Walmart group company, by Alphabet affiliate Shoreline International Holdings LLC has been authorised by the Competition Commission of India (CCI). A wholly owned subsidiary of Alphabet Inc., the parent company of Google, Shoreline International will purchase shares in Flipkart.
According to the CCI, the deal entails an investment in Flipkart Pvt Ltd as well as a contract for particular service provisions between an Alphabet affiliate and Flipkart’s subsidiary. The primary activities of Flipkart, a prominent e-commerce platform, are marketplace-based e-commerce services and wholesale trading. The CCI revealed in a post on X that the Commission had authorised the subscribing of Flipkart Pvt Ltd shares by Shoreline, a subsidiary of Alphabet Inc.
Flipkart’s Recent Funding
Google joined Walmart in contributing $350 million as a minority investor in Flipkart’s extended investment round in May. With this investment, the domestic marketplace’s valuation increased to $36 billion, bringing its total capital to $950 million. Google’s financing was meant to help Flipkart expand into new financial and fast commerce enterprises as well as into established major categories like Cleartrip and Shopsy.
According to Flipkart’s official announcement, Google’s proposed investment and its cloud collaboration will help the company grow and modernise its digital infrastructure so it can serve customers nationwide. Walmart, the company that controls 85% of Flipkart, strengthened Flipkart’s standing in the market by contributing $600 million to the fundraising effort.
Streamlining Regulations
The CCI pointed out that Alphabet’s stake is an “extremely small and non-controlling acquisition of shareholding” and affirmed that Flipkart and Alphabet will continue to function separately. As stated in its order, the competition watchdog stressed that the focus of its investigation was possible impacts on the cloud services market in India.
However, CCI stated in the order that if the Hon’ble Commission were to evaluate the impacts on competition, it should only consider the markets that are directly impacted by the proposed merger, specifically the Indian cloud services market.
Flipkart’s Dominance in the Indian Market
With the $36 billion investment, Flipkart is the market leader in India’s e-commerce sector, catering to hundreds of millions of customers in smaller cities and villages. According to Bernstein, Flipkart, which also owns the fashion e-commerce company Myntra, controls roughly 48% of the Indian e-commerce market.
Amazon, Meesho, which is supported by SoftBank, Reliance Retail, and an expanding number of quick-commerce applications, are competitors of Flipkart. The largest retail chain in India is operated by Reliance Retail, which is rapidly trying to develop an e-commerce strategy. It is owned by Mukesh Ambani, the richest man in Asia. Last year, QIA, ADIA, and KKR invested close to $2 billion in Reliance Retail, which was valued at $100 billion. According to Bernstein, India’s e-commerce market is expected to reach a value of $133 billion by the following year.
