Of Late, Flipkart Group Is Routing Funds In Its Logistics Subsidiaries To Smoothen Deliveries During Times Of Heavy Load
The logistics arm of Flipkart Group, Ekart has received about $98 Mn (INR 641 Cr) funding. The investment has been led by another Flipkart Group firm, the Singapore based Klick2Shop Logistics Services International, via its subsidiary Instakart Services Private Limited.
The Ekart funding aims at strengthening the logistics services of the Flipkart Group, specifically during the festive season sales such as Big 10, Big Billion Days, and more. As said, Flipkart directs over 70% of its orders through Ekart.
As per media reports, it is believed that Flipkart Group is now focusing on increasing the number of its fulfilment centres, decentralizing its warehouses and improving the last mile delivery.
Further, with Flipkart ready to expand into the grocery delivery service and being in the process to come up with its one-stop hyperlocal delivery app, solidifying its logistics services makes perfect sense.
Currently, Snapdeal is busy in rejuvenating its business, and Myntra and Jabong are already under the umbrella of Flipkart Group. This left Amazon to be the only major contender for the Flipkart Group. While on the consumer front, both were almost having a level playing field, the recent $2 Bn funding by Softbank in Flipkart, levelled off the ground more. Whether it’s digital payments, getting UPI license or entering into new services, both Flipkart and Amazon are going along in the same direction.
The Indian consumers are now getting more accustomed to online purchases, leading the Indian etailing market to reach $100 Bn in GMV by 2020. Subsequently, the ecommerce firms have now started focusing on reducing discounts and achieving profitability. Thus, a smooth, quick and hassle-free logistics service catering to both delivery and returns will play a crucial role in now deciding the brand dominance in the Indian subcontinent. How well and timely Flipkart Group will be able to nurture its Indian logistics arm Ekart against Amazon Transportation Services (ATS), will thus prove to be an essential factor.
[The development was first reported by ET]