Success formula of Flipkart, Paytm.
We all are aware of the startups Flipkart and Paytm, owing to their huge success. But what is the secret formula that has helped them to be successful as we all know that most of the startups don’t work out but these two have stood against all odds and managed to stay successful. Let us see what made them sustain.
It was founded in 2007 by Sachin Bansal and Binny Bansal who were both working for Amazon.com earlier and were alumni of the Indian Institute of Technology Delhi. Flipkart began with an initial investment of 4 lakhs and with two computers in a bedroom apartment in Koramangalam, Bangalore and now it has expanded beyond recognition.
How did it expand to be a successful company?
Flipkart is an e-commerce website, an idea which is not unique. Even after the existence of many competitors Flipkart managed to stay up and running and when questioned on why it was so Sachin believed that it was because of the quality of service that they gave their customers. There is something that made it more successful than others and that would be its concentration on Supply Chain Management.
As the company grew they started focusing on their supply chain system. Making sure that their customers got the right products at the quickest time possible. This made the customers happy, the feeling that they would receive their products faster than they were promised made them go for online shopping and leave the brick and mortar stores.
The second aspect that they concentrated on was the problem of online payment and the concerns people had of whether they would receive the product or would be cheated of their money. Flipkart with its cash on delivery feature made sure to earn the trust of its customers. With the expansion Flipkart made sure to include all varieties of products to ensure a wholesome shopping environment for its customers and acquiring other companies also added a lot of stock to its inventory which helped in providing many options to its customers. This is how Flipkart managed to start from the scratch and attain a position that it is in right now.
This is also a startup that was facing a lot of problems during its inception, launched in 2014 it was a company that enabled online payment transactions. In the initial days it was mainly used for mobile recharges although the goal of Paytm was a cashless economy with all of its cash in virtual format it was not able to turn everyone towards it. Then came the Demonetization which was like a boon for Paytm. With the Demonetization effect the number of Paytm users almost tripled, everyone who had paytm started using it and people who didn’t already have the app installed on their devices started to download it. The company reported 700% hike in the number of customers, with everyone from big shops to tea stalls becoming customers of paytm. But the reason Paytm is successful and not the other online wallets is simple.
Paytm takes care of all of its users
There are many online wallets but only Paytm was able to grow rapidly and managed to gain a huge consumer base and the reasons for that are they took immediate steps to ensure that no one gets left behind. They came up with a toll free number which allowed their customers to receive money and recharge their mobile without an internet connection, it explained its availability to all its users who don’t posses a smartphone.
Reasons for Paytm’s growth:
Simplicity of getting the Merchants on board:
It gave an option to Merchants where they can sign up for PayTM without a bank account as long as they had their cash in Paytm account. They would require a bank account only when they had to remove money from their Paytm account. As a result they were able to make sure people used Paytm and the money stayed in Paytm account.
Quick to React:
When the demonetization was announced Paytm was quick enough to ensure that most of users turned towards Paytm rather than other options. They made sure to hit the roads and get everyone on board right from the cab drivers to shopkeepers. Their quick action helped them to sustain and remain successful.
The Paytm mobile app is designed in such a way that you don’t need to sign out and sign in every time, by default you remain signed in which makes the payment faster, although it is a vulnerability it is a feature that ensure faster payment. Faster payment is desirable when you have more than one transaction each day.