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What I learned from Flipkart

Two weeks in the past, Walmart concluded its investments to acquire a majority stake in Flipkart.

This is likely one of the largest transactions in e-commerce and within the web area globally, with Walmart deploying US$16 billion to acquire an approximate 77 p.c shareholding at closing. As a part of this transaction, my firm, Naspers, exited totally, promoting our 11.18 p.c stake for $2.2 billion.

Along with the apparent monetary success — a three.6x or $1.6 billion absolute return in six years — being half of one in all the best success tales of the Indian and international e-commerce market led to numerous insights for Naspers.

Our journey with Flipkart will assist us to additional form how we associate with entrepreneurs to construct main know-how firms sooner or later.

I used to be lucky sufficient to have had a front-row seat at Flipkart for the previous six years, main our numerous funding rounds and being Naspers’ appointed board director. Listed below are a few of the key classes that I will keep in mind transferring ahead.

Pursue large market alternatives and clear up large issues

E-commerce is a world development that manifests in each market world wide. The potential of Indian e-commerce is past any doubt, with a whole retail market of greater than $500 billion. Earlier than Flipkart, Indian e-commerce customers had been repeatedly upset by mediocre choice, low product high quality, little flexibility in fee choices and a prolonged supply expertise.

Flipkart was the primary participant to unravel these points at scale, opening up  to extra classes (beginning with media after which quickly increasing into electronics, life-style, and so forth.), providing warehouse providers, and introducing its personal courier community, Ekart, that ensured buyer delight and money on supply. Different gamers finally supplied related providers, however Flipkart was the pioneer.