Flipkart
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Just a day after Flipkart announced raising $1 billion, e-commerce giant Amazon, too, announced that it will invest an additional $2 billion in India to expand its growth in the country. | Just a day after Flipkart announced raising $1 billion, e-commerce giant Amazon, too, announced that it will invest an additional $2 billion in India to expand its growth in the country. | ||
| − | =The Bansals’ net worth= | + | =Founders: Sachin Bansal & Binny Bansal= |
| + | [[File: Sachin Bansal & Binny Bansal.jpg| Sachin Bansal & Binny Bansal |frame|500px]] | ||
| + | Their e-commerce enterprise, Flipkart, was valued at $7 billion in July 2014, after the company raised $1 billion from investors to bolster back-end operations, and according to reports, closer to $11 billion by november 2014. | ||
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| + | Flipkart kicked up a storm in Indian retail after its big billion day sales on October 6 raked in Rs.600 crore on the back of hefty discounts. | ||
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| + | They have grown their company aggressively, snapping up fashion retailer Myntra in May, and hiring an additional 12,000 personnel to beef up support and technology operations. | ||
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| + | ''' First book order ''' | ||
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| + | They had to buy leaving microsoft to change the world by john wood from a local bookstore before shipping it to their first customer. | ||
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| + | ==The Bansals’ net worth== | ||
''' Bansals nearly as rich as Infy co-founders ''' | ''' Bansals nearly as rich as Infy co-founders ''' | ||
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From 2011 to 2014, Flipkart grew its sales from $10 million to an annualized $2 billion, an over 100 times growth in three years. There is a huge revolution in e-commerce in India, with the future of retailing coming from the internet, said the Bansals while announcing their latest fund raise. The Bansals believe that in the next 10 years, India would have several $100 billion companies in the internet space. “Flipkart is much bigger today than we or our investors had ever imagined,” Sachin Bansal said. | From 2011 to 2014, Flipkart grew its sales from $10 million to an annualized $2 billion, an over 100 times growth in three years. There is a huge revolution in e-commerce in India, with the future of retailing coming from the internet, said the Bansals while announcing their latest fund raise. The Bansals believe that in the next 10 years, India would have several $100 billion companies in the internet space. “Flipkart is much bigger today than we or our investors had ever imagined,” Sachin Bansal said. | ||
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=ESOPs enrich employees= | =ESOPs enrich employees= | ||
''' About 400 Flipkart employees with stock options become crorepatis in less than a decade ''' | ''' About 400 Flipkart employees with stock options become crorepatis in less than a decade ''' | ||
Revision as of 10:31, 9 March 2015
This is a collection of articles archived for the excellence of their content.
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Contents |
Flipkart: 2008-14
Rags to riches: Flipkart’s journey from Rs 4,00,000 to $5-6 billion
The Times of India Business Insider | Jul 31, 2014
In the biggest fund-raising ever for an Indian e-commerce company, in 2014 Flipkart attracted a whopping $1 billion from its existing investors Tiger Global Management and Naspers.
As per industry experts, the Bangalore-based company is now valued at somewhere between $5 and $6 billion — double the estimated value of $2.5-3 billion in May this year.
Flipkart co-founders Sachin Bansal and Binny Bansal want to make Flipkart the country's first Internet company to be valued at $100 billion.
Flipkart has till now garnered almost $1.7 billion as it battles Amazon and Snapdeal for the top slot.
The rise: a timeline
The Times of India presents a timeline of Flipkart's funding — how within seven years a company that founders started off with just Rs 400,000 — is now worth thousands of crores.
October 14, 2008: Co-founders Sachin Bansal and Binny Bansal start Flipkart with a capital of Rs 400,000
July 15, 2010: Tiger Global joins with an investment of $10 million
June 16, 2011: The company announces new logo and gets another investment of $20 million by Tiger Global
August 24, 2012: Investment of $150 million by Tiger Global and Naspers group, crosses gross sales of Rs 100 crore
July 10, 2013: Attracts investment of $200 million from Tiger Global, Naspers, Accel Partners and Iconiq Capital, crosses single-day shipment of 1.3 lakh
October 9, 2013: Another investment of $160 million by Dragoneer Investment Group, Morgan Stanley Investment Management, Sofina, Vulcan Capital and Tiger Global
May 26, 2014: Flipkart acquires Myntra
July 29, 2014: Attracted a whopping $1 billion from Tiger Global Management and Naspers
Just a day after Flipkart announced raising $1 billion, e-commerce giant Amazon, too, announced that it will invest an additional $2 billion in India to expand its growth in the country.
Founders: Sachin Bansal & Binny Bansal
Their e-commerce enterprise, Flipkart, was valued at $7 billion in July 2014, after the company raised $1 billion from investors to bolster back-end operations, and according to reports, closer to $11 billion by november 2014.
Flipkart kicked up a storm in Indian retail after its big billion day sales on October 6 raked in Rs.600 crore on the back of hefty discounts.
They have grown their company aggressively, snapping up fashion retailer Myntra in May, and hiring an additional 12,000 personnel to beef up support and technology operations.
First book order
They had to buy leaving microsoft to change the world by john wood from a local bookstore before shipping it to their first customer.
The Bansals’ net worth
Bansals nearly as rich as Infy co-founders
The Times of India Jul 30 2014 Anshul Dhamija & Samidha Sharma Bangalore TNN
Flipkart Founders’ Combined Net Worth $1Bn
The Bansals of Flipkart—Sachin and Binny —now boast of a combined net worth in excess of $1 billion, inching closer to that of Bangalore’s iconic tech billionaires N R Narayana Murthy and Nandan Nilekani of Infosys.
The fresh $1-billion fund raise values the Bansals’ combined stake of approximately 15% at over Rs 6,000 crore. The four-member Murthy family has a net worth of around Rs 8,700 crore in India’s second largest IT services company, while the Nilekani family’s net worth stands at Rs 6,500 crore.
Consumer internet ventures have been getting fabulous valuations. The US and Chinese internet markets have fostered many billionaire entrepreneurs as their ventures went public. Facebook's Mark Zuckerberg has a net worth of $33 billion, while Alibaba's founder Jack Ma has a $12.5 billion net worth, up $8.9 billion year-todate, according to the Bloomberg Billionaires Index.
The Bansals, who are not related, have a higher net worth than Infosys' co-founder and outgoing CEO S D Shibulal, who along with his family holds shares worth Rs 4,300 crore in the company . Infosys' other co-founder Kris Gopalakrishnan's family has a net worth of around Rs 6,500 crore, as of Tuesday .
“On paper the Bansals personal wealth is a great story , but we will have to wait for a listing to see their actual net worth,“ said an investment banker who did not want to be named. Infosys is now into its fourth decade and has a market cap of about $30 billion.
Flipkart’s $7 billion valuation story has been scripted in just seven years, and the Bansals are now talking of creating a $100-billion e-commerce company.
From 2011 to 2014, Flipkart grew its sales from $10 million to an annualized $2 billion, an over 100 times growth in three years. There is a huge revolution in e-commerce in India, with the future of retailing coming from the internet, said the Bansals while announcing their latest fund raise. The Bansals believe that in the next 10 years, India would have several $100 billion companies in the internet space. “Flipkart is much bigger today than we or our investors had ever imagined,” Sachin Bansal said.
ESOPs enrich employees
About 400 Flipkart employees with stock options become crorepatis in less than a decade
By Radhika P Nair, ET Bureau | 14 Aug, 2014 The Economic Times
BANGALORE: About 400 employees with stock options at online retailer Flipkart have hit the 'crorepati' jackpot because of the surging valuation of the online retailer.
The bonanza is reminiscent of the times when thousands of employees — among them office assistants, drivers and receptionists — at another Bangalore-based company Infosys hit Esop paydirt. "About 400 of the employees who own a stake have now become crorepatis," said a person who has direct knowledge of the employee stock option scheme at Flipkart, which received $1 billion (Rs 6,000 crore) in funding last month, valuing it at $7 billion.
About one-fourth of Flipkart's 7,000 full-time employees own a stake in the company.
At the senior-most level, nearly 20 employees who are at the grade of senior vice-president or above and joined over two years ago are now dollar millionaires, meaning their stock options are worth at least Rs 6 crore on paper. The firm's stock options get vested over four years. Flipkart declined to provide details for the report.
It is the online retail market leader's valuation jump that has led to this wealth creation.
In 2012, the company was valued at about $850 million when it raised about $150 million.
In two years, Flipkart's valuation has grown eight times. For the company's founders, Esops are a conscious attempt at creating wealth for their employees. "While we are competitive when it comes to salaries, Esops offer the opportunity for wealth and value creation," said Sachin Bansal, 32, Flipkart's co-founder and chief executive. "It's a long-term reward for those who believe in the future of Flipkart."
After the IT services industry, ecommerce is now the next big opportunity for employees to create wealth, said Anshuman Das, managing partner at Longhouse Consulting, a recruitment firm that works with startups. "The message going out to entrepreneurs is that wealth creation cannot be restricted to just the founders."
A number of junior employees at Flipkart too hold sizeable stake in the company. This has helped employees like 29-year-old Ambur Iyyappa, a senior manager of customer operations at Flipkart. "I was getting married in 2012 and the buyback allowed me to take care of my wedding expenses," said the graduate of Annamalai University.
Iyyappa, who sold only a part of his stake at the time of the buyback, declined to reveal how many shares he still holds.
He was the second non-founder employee to join Flipkart in 2008. It was only in 2009, the same year that the company raised its first round of funding of $1 million (over Rs 6 crore) from Accel Partners, that Flipkart started providing Esops.
Fashion e-tailer Myntra, which was acquired by Flipkart in May, allowed employees to sell shares at the time of the acquisition, according to a person with direct knowledge of the deal. The company declined to confirm this. Myntra provides Esops to all its core employees, numbering about 600, in functions such as technology and marketing across all levels.
For existing employees, Esops provide recognition.
