tech-companyFor past few years Flipkart has soared to new heights with a current valuation of $10 Billion with several rounds of funding. What is the revenue model that makes Flipkart one of the 5 biggest startups?
Flipkart works as a marketplace, where vendors register their products and buyers come to buy. They are basically targeting an economy of scale where because of the volumes, you (the vendor) earn despite of wafer thin margins and they earn from the commission. The valuation is more about the scope of the E-comm in India than the revenue model. In fact, they have changed their model to be a marketplace from being a complete warehouse based model.
If you get deeper, the holding company FPL is registered in Singapore and has 3-4 subsidiaries in India namely Flipkart India Pvt Ltd (FIPL), Flipkart Internet, Flipkart Marketplace Ltd, Flipkart Payment Gateway Services Ltd and Flipkart Digital Media Ltd. All of these have separate business catering to the main business of e-commerce. You can find more details here
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