Flipkart Business Model: How Does the Company Work?

Who does not know about Flipkart? One of the biggest e-commerce companies in the world, Flipkart has become a go-to option for shopping after Amazon. Founded by two colleagues cum friends, Sachin Bansal and Binny Bansal, Flipkart has emerged as a trailblazer in the e-commerce industry. Flipkart business model was designed to transform the way we shop. Its comprehensible digital platform and online payments have made shopping convenient and affordable. Everything, from groceries to electronics, furniture and fashion accessories, is just a few clicks away from you with Flipkart. 

Introduction To Flipkart: An E-commerce Platform 

The Bansal Duo thought of starting their own business while working at Amazon, a competitor of Flipkart. Sachin and Binny were not satisfied with their jobs and wanted to do something big with their entrepreneurial mind. After working for years at Amazon, they were experienced and proficient enough to design their own business model. Initially, Bansals invested $5,600 in Flipkart to develop an online book store. 2 years later, Flipkart raised $1 million from Accel India. They later formed alliances with Tiger Global and raised a total of $10 million and $20 million in 2010 and 2011, respectively. Several funding phases helped to grow Flipkart business model. 

Flipkart is currently the second-largest e-commerce platform in India, with approximately $ 5.5 billion in revenue in 2021. The tech giant gained popularity rapidly when it got attention from big names like Walmart, an American multinational retail corporation, which acquired the company for a whopping $16 billion in 2018.

Business Model Of Flipkart

Let’s look at the Flipkart business model in more detail for a better understanding. 

A Range of Products & Services

Started as an online book retail shop, Flipkart has now spread its wings. It now deals in electronics, TV & appliances, baby & kids, home & furniture, sports and more, which attracts wide customers from diverse segments. 

Online Marketplace

Flipkart business model includes an online marketplace allowing sellers to list their products and connect with millions of customers across India. It benefits sellers, buyers, and Flipkart. 

Commission-Based Revenue

Flipkart generates revenue by charging commissions on the products sold by sellers. The commission rate depends on the category of the product and rate. 


The company also generates revenue through advertisement. It offers several advertising options to the sellers to promote their products, including banner ads, sponsor products, and social media promotions. 

Logistics & Fulfilment Services

Flipkart business model has logistic services that allow sellers to deliver their products to customers across India. For this, the company charges fees, including other services like packing, storage and shipping. 


Flipkart Plus is the premium service of Flipkart that offers various benefits to customers, such as free & fast delivery, early access to sales, extra discounts, and many other benefits. This premium package charges subscription fees, which generates revenue for the company. 

Financial Services

Flipkart business model also includes financial services that help the sellers financially, such as working capital loans, insurance, and invoice financing. The company generates revenue through the fees charged on the services and interest on the loans. 

The business model of Flipkart works in the business-to-customer (B2C) and focuses on providing a seamless shopping experience to customers. Sellers also take advantage of the online marketplace by selling their products across India. Overall, Flipkart is a great platform for buyers and sellers alike. It invests heavily in logistics and technologies to ensure fast, safe and efficient product delivery. The company continues to expand its offering and rely on robust digital marketing strategies to maintain a leading position in the e-commerce market. 

Marketing Strategies Of Flipkart

Like any other online business, Flipkart also relies on digital marketing strategies to boost its business and increase revenue. Flipkart business model includes the following strategies to reach its target audience. 

Social Media Marketing

Flipkart has a strong presence on popular social media platforms like Facebook, Twitter, and Instagram. The company uses these platforms to promote its products and engage with its followers. 

Email Marketing

The company uses Email marketing to inform its customers about new arrivals, discounts and offers. Email Marketing is one of the most effective ways to keep existing customers engaged, which increases sales. 

Search Engine Optimisation

Flipkart strongly focuses on SEO to make its presence at the top of the Google search. It includes optimising product listing, creating high-quality content, and improving website speed and performance. 

Performance Marketing

Flipkart uses performance marketing, including search and display marketing, to reach the right audience and drive sales. 

Influence Marketing

The e-commerce giant also collaborated with various social media influencers to increase reliability and brand awareness. With this, Flipkart reaches its new audience and improves customer engagement. 

The Success Graph Of Flipkart

Flipkart business model was inspired by Amazon. Since its inception, the company has held the crown of the biggest e-commerce brand in the country. The success story of Flipkart inspires youngsters to come out of their shells to follow their passions. With the robust business model, the company has yet to face such downfalls; however, challenges are part of the competitive online world. 

The only thing that shocked the e-commerce world and Flipkart alike was Amazon’s announcement of entering the Indian retail market. It was definitely not an easy battle, but Flipkart continued to thrive, all thanks to a robust Flipkart business model. 

Flipkart: A Successful Store In Indian Online Market

In the advanced technological world, Flipkart completely revolutionised the Indian online market. Flipkart business model exemplifies innovation, customer-centricity, and adaptability in the ever-evolving e-commerce industry. With high-quality products and services, Flipkart has set new standards for excellence in online retail. As the company continues to evolve and expand its reach, its impact on the Indian economy and consumer landscape is bound to grow exponentially. 

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