Flipkart: Making its Cart Bigger Through Acquisitions | Original Article

ABSTRACT:

The case is about an Indian ecommerce player – Flipkart, started as online market place in 2007 by two IIT Delhi alumni and ex Amazon employees - Sachin and Binny Bansal. In the initial days they started with selling books online with add – on like free shipping and Cash on Delivery (COD) to entice customers and deal with the other competitors. Over a period of time, Flipkart has entered into other segments too like mobiles, cameras, computers, healthcare and personal products, home appliances and electronics, stationery, perfumes, toys, apparels, shoes. In the journey so far Flipkart has done eight acquisitions and took majority stake in two with an objective of strengthen its business and has become the foremost players in Indian e-commerce space but with increased sales company has booked hefty losses and even not reached to break even. The company bought by Flipkart has one or other common investor that has invested in Flipkart and the target companies. This gave rise to the question whether these mergers and acquisitions was a strategic fit for Flipkart or driven by the investors to save their money. On 1st April 2016, Flipkart grabbed Bangalore based mobile payments startup- Phone Pe marking its eighth acquisition. Started in 2007as online market place, Flipkart in the journey till date has bought eight companies and acquired majority stake in two. With the series of deals, it has made his presence felt in several verticals and has become the foremost players in Indian e-commerce space but with increased sales company has booked hefty losses and even not reached to break even.