Showing posts with label Flipkart. Show all posts
Showing posts with label Flipkart. Show all posts

Monday, October 5, 2015

Sustainability of Loss Making Online Companies



How do you swallow this: Flipkart which was established in year 2007 has never earned profit till date. It has accumulated losses in hundreds of crores till now (e.g. it reported Rs 281 Crores in losses in FY 2013). But this year Flipkart founders Sachin and Binny Bansal have become India's 86th richest persons with wealth of $1.3 Billion each.

Compare this case with Kingfisher and Vijay Mallya. The company was making losses while Vijay Mallya was India's 84th richest man till year 2013. Perhaps not many would have raised brow even at him if he kept finding investors to keep his loss making company running. But ultimately his company went bankrupt and he also came out of India's 100 richest persons list. It was not only a personal loss for him but it meant disaster for thousands of his employees.

Can the story repeat itself with Flipkart? Most likely no - but it is only a guess. Flipkart has some 33,000 employees. What if the company fails? It would surely be tough for its employees and their family members. Same case with so many other online retail companies.

My point or concern is simple: what are our regulators doing about it? Is not some government regulator meant to keep track of such risky businesses - losses for 8 years straight with owners rising high on the Billionaires list? Of course I am not saying ban them; but owners should be held more responsible by regulators if their employees count goes > a threshold.

I think there is a strong case to bring out some sort of mechanism to protect workers and other stakeholders in case of such companies.

- Rahul

[Disclaimer: Views expressed are personal]

Monday, September 5, 2011

Flipkart: Fuelling a Revolution


I have done shopping of books on Flipkart.com for a number of times. I have always found it very user-friendly and convenient. I have even availed discounts in the range of 30-40% on the website. More than satisfactory, I would say I have experienced customer delight through Flipkart.

Flipkart has employed technology for better user experience in a wonderful manner. For example, it always ‘remembers’ my shipping address and asks me if it can use the same. I have now realized how well it makes use of analytics.

During my last shopping session, I had bought a book from the brilliant author Devdutt Pattanaik. Today, I received an email from Flipkart, informing me about two ‘forthcoming’ books from the same author, titled, “7 Secrets of Shiva” and “7 Secrets of Vishnu”. 


Many of my friends have bought electronics items from Flipkart too. All of them feel very happy about their experiences.

I think Flipkart is really going good to great. I hope they keep up the momentum. What pleases me more is that it is an Indian venture based in Bangalore (its founders are Sachin Bansal and Binny Bansal).

Flipkart is now being called India’s Amazon.com.

While I hope more Indian websites and entrepreneurs take some leaves out of Flipkart’s growth story and take “Made in India” brands to greater heights, I also think that Flipkart in a way has fuelled a new “reading revolution”. By making books conveniently available at our doorsteps (Flipkart delivers books through couriers at a lightning speed), it has helped a lot of readers and made a lot of regular book-buyers out of occasional buyers. I am sure its contribution from this angle is immense and would grow in the coming days.

All the best, Flipkart!

- Rahul