Flipkart’s marketplace gets Rs 3500 crore

Flipkart’s marketplace gets Rs 3500 crore
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Bengaluru, Sep 19: Flipkart Internet, the entity which runs the e-tailer’s marketplace, has received Rs 3,460 crore from its Singapore-based parent in what is one of the single largest capital infusions for the Walmart-owned company.
The fresh capital sets the stage for Flipkart’s impending festive season sale battle against Amazon. Documents sourced from business data platform Paper.vc show the allotment of Flipkart Internet shares took place on August 30 this year. Flipkart’s arch rival Amazon India has over the past four months pumped around Rs 5,400 crore into its India entities involved in the e-commerce business.
According to consultancy firm Redseer, this year e-commerce companies are expected to clock gross sales in the range of $2.5-3 billion during their flagship sales, which typically lasts for five days. This will be the first such festive season battle for Flipkart under the ownership of Bentonville-based retailer Walmart. The festive season leading up to Diwali is significant for e-tailers as it helps them mop up a good chunk of their annual sales and also brings in a new set of consumers who typically don’t shop online.
For instance, Flipkart is offering an insurance of sorts for its smartphone business to tap into offline users who would typically buy phones in brick-and-mortar shops. The company has already been coming up with programmes to enhance affordability and faster delivery, among others, to boost overall sales.
“To bring non-users to Flipkart, we are adding complete mobile protection to buyers, which essentially acts as an insurance in case your phone is damaged or lost,” said Flipkart VP (smartphones & large appliances) Ajay Veer Yadav. The e-tailer normally generates a majority of sales from smartphones, large appliances and fashion during the annual sales event as consumers typically go for highvalue purchases during this period. Flipkart is also expanding the number of pincodes where it can ensure faster deliveries.
Amazon has increased its warehousing strength by about 50 per cent this year compared to 2017. It has over 50 fulfilment centres (FCs) in India with a combined storage space of close to 20 million cubic feet.
“Bringing more products under Prime pool would boost sales,” said Amazon India VP (customer fulfilment) Akhil Saxena. The company claims to have around 40 million products ready to be shipped under Prime.
A majority of festive sales is generated by Amazon and Flipkart, while players like Paytm Mall, too, have been trying to ramp up their presence over the last two years. Among the efforts to boost total sales, both companies have also lined up instant credit — Amazon Pay EMI, and Flipkart via partnership with Kissht, for certain users without the need of debit or credit cards. Executives in these companies say card-less credit will boost purchasing power of consumers who end up discarding their carts in absence of adequate capital for large purchases. These credits are typically in the range of about Rs 30,000-60,000.