E-commerce business in India: Case of an online retail company

Flipkart.com

The case was written by Professor V. K. Gupta.

It is intended to be used as the basis for class
discussion rather than to illustrate either effective
or ineffective handling of a management
situation.

© 2014, IMT, Ghaziabad, India

No part of this publication may be copied, stored,
transmitted, reproduced or distributed in any
form or medium whatsoever without the
permission of the copyright owner.

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 E-commerce business in India: Case of an online retail company
Flipkart.com

It was end of July 2014, Sachin and his partner Binny, founders of Flipkart.com, an electronic commerce
(e-commerce) company in India, they had set up seven years ago, were preparing for their meeting with a
group of Venture Capitalists for exploring possibility of a land mark deal for raising funds, which could
shape the future direction of their company. They were at a very crucial stage of their business venture and
any interruption at this juncture could cause a great setback to their very ambitious plans.

FLIPKART.COM

Flipkart.com was founded in Bangalore, India, in 2007 by Sachin Bansal and Binny Bansal, IIT graduates
and former employees of a US based e-commerce company Amazon. Their initial plan was to start this
venture as a price comparison platform which later got transformed into an e-commerce company selling
books. Subsequently, a number of other product categories were added to offer a wider range of products
to the growing breed of net savvy younger generation in India.

By 2014, it had grown from a 2 member company to a 14,000 members company since its inception. It had
achieved the $1 billion mark in Gross Merchandise Value1 (GMV) in March, 2014 from $70 million in
2011, first by any Indian online retail company. Flipkart was revalued at $5 billion at that time. It had close
tie up with 15 courier service providers. There were 22 million registered users with 4 million daily visitors
to their website. On an average 30,000 items were shipped daily. The company offered over 15 million
SKUs spread across more than 70 categories. Bansal was nominated for Ernest and Young award for best
entrepreneur of 2010. The company stocked up to 11.5 million book titles on an average (refer to exhibit 1
for sales of Flipkart.com for past 5 years).

HISTORY OF E-COMMERCE

E-commerce or electronic commerce, is the purchasing or selling of products and services using Internet as
a vehicle. E-commerce was introduced about 40 years ago and, it still continues to grow with new
technologies, innovations, and several thousands of enterprises entering the online market every year. The
convenience, safety, quality of products and services and user experience of ecommerce has improved
exponentially since its inception in the 1970’s2. In 1990 Lee and Cailliau, published a proposal to build a
Hypertext project called, “World Wide Web”, now known as internet. E-commerce companies are those
in the primary business of providing web platforms and websites through which individuals or companies,
using a computer or a smartphone, can buy a product or service. This definition does not include classified
and information portals, online transactions between Businesses, and Websites offering online financial
services3.

1 http://indianonlineseller.com/2014/03/12/Flipkart-crosses-1-billion-in-sales-a-year-ahead-of-schedule/
2 http://www.mivamerchant.com/blog/the-history-of-ecommerce-how-did-it-all-begin
3 Online retail heat altering brick & mortar models

http://www.crisil.com/pdf/research/CRISIL-Research-Article-Online-Retail-Feb14.pdf

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The largest online retailer in the world Amazon was launched in 1995 as an online bookstore. Conventional
bookstores could stock few thousand titles due to limitation of physical space while Amazon, being an
online only store was able to offer much wider range of books to the customers.

E-commerce transactions can be classified into three broad segments, based on players involved in the
transaction – Business to Consumer (B2C), Consumer to Consumer (C2C) and Business to Business (B2B)
(refer to exhibit 2 for modes of e-commerce transactions)4

E-COMMERCE IN INDIA

The overall e-commerce opportunity in India and China is comparable. The two emerging markets both
have massive populations of over one billion, buoyant by a fast increase in middle class with surplus
income, fast GDP growth and challenging infrastructure according to Euro monitor International5.

The e-commerce market in India has enjoyed growth of almost 50% in the last five years. According to
McKinsey report, business executives in India reported renewed optimism for country’s economic
prospects6. The government and regulatory bodies are also promoting e-commerce through investment in
infrastructure and policy support. Over 30,000 sellers sell on eBay India annually to 4 million consumers
in 3,311 Indian cities. Over 15,000 sellers export a variety of Indian handcrafted products to 112 million
customers in over 190 countries7.

The considerable rise in the number of internet users, increasing acceptability of online payments, the
proliferation of internet-enabled personal computers, tablets and smartphones and favourable demographics
are major factors driving the growth of e-commerce in India. Internet users in India are expected to be 300
million by 2015, out of which 200 million would be mobile users8. Presently the Indian Government has
allowed 100 per cent FDI in B2B e-commerce, while FDI in business-to-consumer (B2C) is restricted. In
addition, there is a compulsory 30 percent local sourcing norms for foreign players 9 in single brand retail.
According to CRISIL, online retailing market in India is estimated to grow at CAGR of 55 per cent10 (refer
to exhibit 3 for online retail market in India for last 5 years). Factors which would determine growth of
ecommerce in India are given in exhibit 4. However, poor infrastructure and connectivity remain a worry
for the online retailers to reach smaller towns11.

4 Rebirth of e-commerce in India - Ernst & Young

http://www.ey.com/Publication/vwLUAssets/Rebirth_of_e-Commerce_in_India/$FILE/EY_RE-BIRTH_OF_ECOMMERCE.pdf
5 http://www.rediff.com/money/report/indias-e-commercemerce-prize-may-be-spread-thinly/20140730.htm

6 Economic Conditions Snapshot, June 2014: McKinsey Global Survey results

http://www.mckinsey.com/insights/economic_studies/economic_conditions_snapshot_june_2014_mckinsey_global_survey_results
7 E-Commerce Rhetoric, Reality and Opportunity

http://www.kpmg.com/in/en/issuesandinsights/articlespublications/pages/e-commerce-report.aspx
8 “India-Internet,” IIFL Institutional Equities, 2011, via ISI Emerging Markets.

http://nangiaadvisors.com/wp-content/uploads/2014/05/Whitepaper-Indian-Retail.pdf
9 http://bizresearchlabs.com/ecommerce-in-india/
10 http://www.crisil.com/pdf/research/CRISIL-Research-Article-Online-Retail-Feb14.pdf
11 http://articles.economictimes.indiatimes.com/2014-05-15/news/49873465_1_ashish-jhalani-Flipkart-logistics-companies

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GOVERNMENT POLICY ON FDI FOR E-COMMERCE

India's FDI policy permits FDI up to 100% in e-commerce activities, but this is dependent on a very crucial
clause – the policy applies only to companies engaged in B2B e-commerce, and not to those in online
retail12.

FUNDING FOR START UP E-COMMERCE COMPANIES

Venture capitalists (VC) and private equity (PE) players had demonstrated their faith in the growth of e-
commerce in the country. This was amply substantiated by the significant increase in the total investments
(US$305 million in 2011 against US$55 million in 2010). Flipkart’s valuation too has kept pace with the
increasing rounds of funding, with the latest round estimating its value at $5 billion. Flipkart has been
moving at a fast pace in the last few months ever since Amazon formally launched its e-commerce
marketplace and ramped up aggressively13.

Wipro's Azim Premji and Infosys's Narayana Murthy have their investments in Myntra, Snapdeal and
Amazon respectively. Myntra was recently acquired by Flipkart. Earlier this year Azim Premji's investment
arm- Premji trust had invested USD 50 million and USD 100 million into Myntra and Snapdeal
respectively14.

FLIPKART'S ALLEGED VIOLATION OF THE FDI POLICY

Since November 2013, Flipkart had been under investigation by the Enforcement Directorate (ED) for
alleged violation of FDI regulations. Violation of FDI regulations is covered by the penal provisions of the
Foreign Exchange Management Act, 1999. Flipkart shifted to a B2B marketplace model only in April 2013
to ensure compliance with the FDI norms in e-retail. The investigation by the ED pertains to the capital that
Flipkart raised before converting into a marketplace model. It appeared that Flipkart was operating on a
B2C e-commerce model where they owned the complete inventory even while having received FDI worth
nearly $180 million till September 201215.

Flipkart had created a complex business structure by integrating its B2B operations with the marketplace
model. A company called WS Retail was incorporated in 2009, which transacted with the customers and
allegedly acted as a front for the B2B firm (Flipkart Online Services) which received foreign investment.
The entire inventory of Flipkart was being managed by WS Retail. However the ecommerce company
continued to manage the delivery and shipping of products16. In 2013, Kuchhal had acquired e-commerce
Flipkart’s front-end operations company WS Retail Services, helping the e-retailer comply with regulations
on foreign ownership17.

12 http://www.mondaq.com/india/x/325224/international+trade+investment/FDI+in+B2C+eretail
13 http://yourstory.com/2014/07/Flipkart-funding-timeline/
14 http://zeenews.india.com/business/news/technology/indian-it-czars-fight-e-retail-battle_106075.html
15 http://www.mondaq.com/india/x/325224/international+trade+investment/FDI+in+B2C+eretail
16 http://www.business-standard.com/article/companies/Flipkart-changes-business-model-launches-Flipkart-marketplace-

113040600051_1.html
17 http://timesofindia.indiatimes.com/tech/it-services/Flipkart-divests-front-end-operations/articleshow/18437034.cms

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THIRD-PARTY ONLINE PAYMENT SOLUTIONS IN CHINA AND JAPAN 18

China’s leading third-party online payment solution allows individuals and businesses to execute payments
online in a secure manner. Its escrow service has made consumers confident about conducting online
transactions without being concerned about product delivery and quality. This is because payment is only
released to sellers when consumers confirm the delivery of orders.

Japanese e-commerce players rely on convenience stores, for the payment and delivery of products. These
stores also provide ATM, copier/fax, ticket reservation, digital camera print, bill payment and delivery
services. Users place their orders online and generate a unique payment number by selecting the
convenience store option during checkout. They then visit the convenience stores, where they pay and
receive the ordered products.

In India too, e-commerce companies are now offering various payment options including payment on
delivery and also facility for full refund on return of goods purchased within a specified period, giving
much needed confidence to the buyers on online retail model.

COMPETITORS

Globally, E-commerce space is flooded with a number of companies trying to take advantage of easy entry,
as there are no visible barriers in ecommerce as compared to the brick and mortar business. In India also, a
number of ecommerce companies had emerged (refer to exhibit 5 for details of e-commerce companies in
India).

Amazon, one of the largest e-commerce company, with plans to capture growing e-commerce market in
India, announced investing 2 billion dollars in Indian operations19. Amazon, which launched operations in
India in June, currently operates a marketplace model. Under this model, Amazon.in does not sell products
directly to customers but only provides a platform to sellers20.

Offline retail planned to compete with online retail companies head on as economy was showing signs of
recovery. Brands such as Samsung and Sony planned to put in money for joint advertisement campaigns
and offline deals with the leading retail chains. Their month-on-month sales jumped 35-40% in August
aided by consumer deals in April-July when the market was either flat or had shrunk21.

18 “FAQ,” Airtel money website, www.airtelmoney.in/wps/wcm/connect/airtelmoney/airtelmoney/home/FAQs/

“Convenience Stores,” Japan-guide website, www.japan-guide.com/e/e2071.html
“e-context,” Digital garage website, www.garage.co.jp/en/econtext/02/
19 http://www.asianage.com/india/amazon-bets-2billions-Flipkart-s-1billions-334
20Amazon asks Indian govt to relax FDI in retail e-commerce space

http://m.firstbiz.firstpost.com/corporate/tax-dispute-vodafone-ceo-to-visit-india-next-month-may-meet-fm-46968.html
21 http://economictimes.indiatimes.com/tech/internet/offline-retail-to-compete-with-online-as-economy-showing-signs-of-

recovery/articleshow/40353162.cms

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FACTORS RESPONSIBLE FOR FAST GROWTH OF FLIPKART

Top Management Perspective

Flipkart was set up as an e-commerce business in India with a long term perspective. Top management had
forecasted crossing 1 billion US$ mark in sales in 2015 and to make it as 100 billion US$ company on lines
of Amazon. Flipkart achieved this milestone in March 2014 reconfirming their belief.

Customer’s perspective

Flipkart was quick to understand the requirements of its customers. In the beginning, Bansal decided to
promote Flipkart brand by giving book markers to the general public for sales promotion. They chose a
prominent book store in Bangalore and handed over book markers only to those customers walking out of
the store, who had purchased a book22. Favourable demographics, increasing number of urban households,
growing internet penetration in smaller towns and rural areas, proliferation of mobile devices and emerging
need for convenience, choice and access are acting as prime movers from the demand side. The e-
Commerce companies have introduced innovative business models, by offering convenient payment
options and by introducing technological innovations and customer friendly policies to capture online time
and wallet share23.

User friendly and interactive Website and ordering process

Flipkart had developed a very easy to navigate interface. It offered the options of searching by using varied
filters like brands, price ranges, etc. If the product was not available, user information could be entered and
the user would be informed when the product becomes available. Also, the website had photographs of
products along with the reviews24. The status of the each order could also be tracked.

Wide Product Range

Flipkart started with selling books but later expanded its offerings. It went on to include mobile and
accessories, cameras, computers, MP3 players, home appliances, pens & stationery and kitchen
appliances. In 2012, it introduced Flyte digital music store, belts, bags & luggage, toys, baby care,
footwear, clothing for men. Later, clothing for women was also introduced25.

Strategic partnership with Consumer Durable and Electronic Goods Manufacturers

According to Economic Times, August 12, 2014, “Flipkart had again sold out all of its Xiaomi Mi 3 devices
in its fourth flash sale online on Tuesday in just a few seconds. The Chinese handset maker made available
20,000 units of the Mi3 smartphone today. The lot was the largest the company has offered since it began
selling smart phones through Flipkart last month, but it may still not be enough for the unprecedented
demand of an estimated over 100,000 people who have registered for getting a Mi 3 device26”. Flipkart had
to continuously upgrade its ability to source and deliver products demanded by its customers to have
continued faith in its offerings.

22 http://yourstory.com/2014/08/sachin-bansal-Flipkart-journey/
23 https://www.kpmg.com/IN/en/IssuesAndInsights/ArticlesPublications/Documents/KPMG-IAMAI-ES.pdf
24 http://www.indiastudychannel.com/resources/154010-Ebay-Flipkart-best-shopping-sites-India.asp
25 http://www.Flipkart.com/
26 http://articles.economictimes.indiatimes.com/2014-08-12/news/52727764_1_Flipkart-flash-sale-mid-segment-devices

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MARKETING STRATEGIES

Effective marketing and sales promotion strategies

 Word of Mouth
 Strong community with millions of followers on Facebook & twitter
 All operations synchronised via mobile apps on all important platforms
 Advertisment Campaigns on TV and print media
 Regular Sales Promotions to reduce fluctuations in sales
 Offered cash rewards, discounts, coupons, loyalty points, EMI options, free shipping

Efficient Customer Service

Flipkart had set up a dedicated customer support team providing 24/7 customer support.

Multiple options for payment and goods return to the customers

 Cash on delivery
 Credit cards, debit cards and net banking
 30-Day replacement guarantee
 Original product warranty
 New Electronic wallet
o Purchase credit to Flipkart account which can be subsequently utilised to make
purchases on the site
o If insufficient balance, partial payment via Flipkart account and rest via other sources
o Provides security and easy way to pay online
 Payment Gateways27
o Set up a newly registered Flipkart Payment Gateway Services Pvt Ltd and launched its
online payment solution, Payzippy to earn from transactions happening not just on
Flipkart

Flipkart’s distinct advantages over competitors

1. Amazon – Wider range of products, More discounts, Better payment options

2. Snapdeal – Better payment options and more efficient delivery
3. Ebay – Fewer variations in quality, shipping charges and deal prices

Company followed Acquisitions/ Inorganic growth strategy

Various acquisitions of Flipkart are:

1. 2010 – WeRead, social discovery tool28

2. 2011- MIME260, digital content platform company29
3. 2011 – Chakpak.com – Bollywood news site that offers updates, news, photos and videos30
4. 2012 – Letsbuy.com, India’s 2nd largest e-retailer in electronics. Flipkart bought company for
approximately US $ 25 m31

27 http://www.nextbigwhat.com/Flipkart-payment-gateway-payzippy-297/
28 http://www.vccircle.com/news/technology/2010/12/22/Flipkart-buys-social-book-discovery-tool-weread
29 http://www.medianama.com/2011/10/223-Flipkart-mime360-digital-music-ebooks-games/
30 http://in.reuters.com/article/2011/11/24/idINIndia-60714020111124
31 https://www.facebook.com/Corporate.Learnings/posts/523876657679992

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 5. 2014: Acquired Myntra.com, an e-commerce company in fashion garments and accessories
business in an estimated INR 20 billion deal32

OPERATIONS STRATEGIES

Strategic Inventory

Flipkart kept adequate inventory to meet demand and had effective warehouse management system. The
entire inventory was handled by WS Retail Services Pvt Ltd. The company made use of ERP system. It
applied the strategy of stocking frequently ordered items in its own warehouses while it had an extensive
network of suppliers for low volume products. The company had developed a system of making relatively
more accurate sales forecast for planning the supplies and inventory. The company had warehouses in 6
large cities. Slowly Flipkart was changing to a marketplace model where it would involve other sellers in
addition to WS Retail also.

It was setting up regional warehouses and signing up with more suppliers across the country to ensure
customers got orders delivered by the nearest supplier.

Capacity Planning

Flipkart has been increasing its capacity to service increasing number of orders by setting up warehouses
and other facilities needed. Supply Planning was responsible for supporting the integration of various
assets in the Supply Chain function with Demand and balancing Demand objectives with the operational
and financial constraints of the Supply Chain function.

Responsive Supply Chain

In online commerce, a robust back-end is key for survival. Flipkart had been building sourcing, storage and
handling capacity to handle the expected volumes as per its forecast. Flipkart focused on supply chain
responsiveness and took active feedback from logistics partners regarding problems in delivery.
The supply chain of the company consisted of warehouses in six cities and its own logistics company called
eKart, which reaches over 150 cities along with third-party logistics partners. Flipkart planned to expand
its warehousing facility to Tier-II and Tier-III cities 33 and further open the eKart services to other e-
commerce companies in April, 201334. Till then, eKart handled most of the in-house deliveries (60-70%).
Interactive website enabled everyone to track packages more efficiently35.
Apart from this, there was association with many third party courier services like Blue Dart. Flipkart also
entered into an agreement with Indian Postal Service for distribution in remote areas of the country.
Setting up regional warehouses and signing up more suppliers for reducing air shipments gave the company
distinct advantages over competition such as: ability to handle delivery rescheduling requests better,
managing product returns faster, helping customers exchange products, services that were time-consuming
( refer to exhibit 6 for order to delivery process of Flipkart). Most of the packages were being sent by air,
and expensive proposition. This too is marred with delays due to frequent offloading36

32 http://timesofindia.indiatimes.com/tech/tech-news/Flipkart-acquires-Myntra/articleshow/35472797.cms
33 http://articles.economictimes.indiatimes.com/2014-02-13/news/47305247_1_logistics-arm-payzippy-sachin-bansal
34 http://www.business-standard.com/article/companies/where-will-Flipkart-spend-its-1-billion-114072400152_1.html
35 http://www.Flipkart.com/trackorder
36 http://in.reuters.com/article/2014/06/10/india-retail-idINKBN0EK1YI20140610

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Training employees and business partners
Flipkart co-founder and chief executive Sachin Bansal said Flipkart had 14,000 employees, the majority of
them working in technology and supply chain. "The training would be given to Flipkart's new employees
and business partners. We want the new people to be trained so that they gain necessary skills certified by
the government," said chief people officer, Flipkart. According to the labour ministry's guidelines, after
completion of training, an employer would “ensure a minimum 80 per cent of employment for a minimum
of six months". The government would provide infrastructure, trainers and assistance in assessment to
employers37 .

Bottom up perspective

Flipkart has made it a practice to learn and make improvements as it progressed. Based on customer
feedback, it had been improving its processes to make these more customer friendly and cost effective.
Many best practices leant by the companies, it had acquired, have been adopted by its other business units.
Continuous improvement is one of the philosophies pursued by the company.

ISSUES AND CHALLENGES

E-commerce industry was facing significant hurdles with respect to infrastructure, governance and
regulation. Low internet penetration of 11 percent as compared to world average of 34 percent impeded the
growth of e-Commerce by limiting the internet access to a broader segment of the population in India. Poor
‘last mile connectivity’ due to missing links in supply chain infrastructure was limiting the access to far
flung areas where a significant portion of the population resides. High drop-out rates (25-30 percent) on
payment gateways, consumer trust deficit and slow adoption of online payments were compelling e-
commerce companies to reply on more expensive methods such as payment on delivery38. Organized retail
also planned to hit back by offering more customer friendly campaign and lucrative offers to counter the
impact of online retailers.

Bansals were happy with the deal they just concluded. Flipkart in July, 2014, raised USD 1 billion (over
INR 60 billion) in fresh funding from a group of investors, the largest so far in the competitive online
shopping segment in the country39. Co-led by existing investors Tiger Global Management and Naspers,
Singapore's sovereign wealth fund, GIC, Accel Partners, DST Global, ICONIQ Capital, Morgan Stanley
Investment Management and Sofina also participated in this latest financing round ( refer to exhibit 7 for
details of Flipkart funding).

THE ROAD AHEAD

Tie up with Motorola and Xiaomi for low cost high end smartphones had given a lot of visibility and
customers to Flipkart. However, customers are always impatient and company needs to gear up to meet

37http://www.business-standard.com/article/companies/Flipkart-signs-up-for-modi-s-labour-training-plan-114080201543_1.html
38 http://www.kpmg.com/in/en/issuesandinsights/articlespublications/pages/e-commerce-report.aspx
39Flipkart raises record $1 billion in fresh funding; drops plans to go public
http://timesofindia.indiatimes.com/business/india-business/Flipkart-raises-record-1-billion-in-fresh-funding-drops-plans-to-go-
public/articleshow/39235252.cms ; http://www.forbes.com/sites/saritharai/2014/07/29/indias-Flipkart-raises-1-billion-among-the-
largest-in-single-funding-round-in-global-e-commerce/

9
their needs. Even though Flipkart was currently running at a loss (accumulated loss of INR 2.8 billions) 40,
the company has good growth prospects as it already enjoyed the first mover advantage in India. Further
on, the online retail market is expected to expand exponentially. The rounds of funding received by the
company and the valuation of the company have been growing at a steady rate. The company’s total
turnover had been increasing steadily and in the future there is potential for increase in volumes to a stage
where the company starts earning profits. Flipkart opened its first brick-and-mortar store called
'Fliptomania' in Bangalore after several employees called for company-branded products. The Bangalore
store sells merchandise like T-shirts, jackets, stationery, apparels and laptop stickers under its
brand. Outside customers contribute just 10% to the total store footfall. Encouraged by this, the company
is planning more such stores at its offices in Delhi, Mumbai and Kolkata initially for employees41. However,
tough competition from Amazon India42 and the planned entry of Walmart may affect the rate of growth of
Flipkart in the coming months.

40 http://www.livemint.com/Companies/nEzvGCknQDBY2RgzcVAKdO/Flipkart-India-reports-loss-of-2817-crore.html

41 http://economictimes.indiatimes.com/industry/services/retail/Flipkart-gets-an-offline-retail-push-from-employee-
feedback/articleshow/40383427.cms
42 http://articles.economictimes.indiatimes.com/2014-05-04/news/49609451_1_amazon-india-binny-bansal-sachin-bansal

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 EXHIBIT 1 : REVENUE OF FLIPKART
In Millions 2010 2011 2012 2013 2014
INR 116 5000 2048 11800 61000
US Dollars 1.9 82.0 33.6 193.4 1000.0

Source: http://www.crisil.com/pdf/research/CRISIL-Research-Article-Online-Retail-Feb14.pdf

EXIHIBIT 2: MODES OF E COMMERCE TRANSACTIONS

Source: Rebirth of e-commerce in India - Ernst & Young

http://www.ey.com/Publication/vwLUAssets/Rebirth_of_e-Commerce_in_India/$FILE/EY_RE-
BIRTH_OF_ECOMMERCE.pdf

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 EXHIBIT 3 : Online Retail Market in India
In billions 2009 2010 2011 2012 2013 2014 2015* CAGR
INR 24 38 58 91 139 224 334
USD 0.4 0.6 1.0 1.5 2.3 3.7 5.5 55.09%

Source: http://www.crisil.com/pdf/research/CRISIL-Research-Article-Online-Retail-Feb14.pdf
* estimated

EXIHIBIT 4: FACTORS DETERMINING FUTURE OF E-COMMERCE IN INDIA

Device
Incresed PC penetration
Increased smart phone and
tablet market
Declining PC, tablet and
smartphone costs
Demogaphic
Rising disposable income
Rapid urbanization
Need for conveneience

Payments
Internet Multiple payment instruments
Growth of internet user base Increased average transaction
Increased broadband value
penetration and launch of 3G Increase in payment gateways
and 4 G Enhanced security with multiple
Declining Internet tarrif authentication layers

Source: http://bizresearchlabs.com/ecommerce-in-india/

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 EXHIBIT 5: COMPETITORS – E-COMMERCE INDUSTRY IN INDIA

Source: Crisil e tails eat into retail: http://www.crisil.com/pdf/research/CRISIL-Research-Article-Online-

Retail-Feb14.pdf

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 EXIHIBIT 6 : ORDER FULFILMENT PROCESS

Source: Flipkart: What is the work flow at Flipkart after the order is placed online? http://www.quora.com/Flipkart/What-
is-the-work-flow-at-Flipkart-after-the-order-is-placed-online

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 EXIHIBIT 7: Flipkart FUNDING

Source: What has been Flipkart’s funding journey that led to the latest billion dollar round?
http://yourstory.com/2014/07/Flipkart-funding-timeline/

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