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Case Code: CLFIN006
Case Length: 7 pages
Period: -  
Pub Date: 2017
Teaching Note: Not Available
Subject : Finance
Price:Rs.100
Organization :Flipkart
Industry :Online Retail Industry
Countries : -

Flipkart- the Story of India’s Biggest Private Funding

 

ABSTRACT

The case captures the various episodes in the story of funding of India-based e-commerce company Flipkart, which stood as the highest valued venture-capital-backed company in the country. The case briefly narrates the beginning of the Indian e-tail giant, and focuses exclusively on its funding episodes. The case broadly captures the initial years and the growth years of Flipkart and elaborates on the types of the funding sources Flipkart chose through its expansion. The case discusses Flipkart’s tactics of dealing with competition and its expansion into fashion retail zone. The case also brings into light the challenges Flipkart faced for being reportedly over-valued.
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Issues:

  • Understand the changing scenario of Indian online retail segment.
  • Understand closely the funding story of a online start-up.
  • Appreciate the entrepreneurial dynamics in the funding rounds of a start-up firm.
  • Understand the various options for funding like Angel investors, Private Equity, Venture Capitalists, etc.
Introduction
In July 2015, India-based e-commerce company Flipkart raised US$700 million in its 12th round of funding, which took its value to US$ 15 billion . Since its inception in 2007, Flipkart had raised a total of US$3 billion from its 12 rounds of funding (Refer to Exhibit 1 for Flipkart’s Funding Rounds,) that encompassed 16 investors. This was the biggest private funding in India and one of the biggest globally.

Flipkart, which started off as an e-commerce company that sold books, had scripted a promising growth story in the 9 years of its existence. It had drawn the attention of investors through its burgeoning customer base, technological agility, efficient supply chain cycles, diverse merchandise, and consistent customer satisfaction. With a clear vision and a strong strategy of building scale, Flipkart created agile systems around the model that offered a tough fight to its peers like Amazon and Snapdeal ..

Keywords

Flipkart, Funding Round, Private Equity, Venture Capital, Angel Investor, entrepreneurship, funding a business, start-up financing, funding strategy



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