Since a long time, Flipkart has been termed as India’s largest eCommerce platform. In a move to further strengthen their feet in the Digital Payment market, Flipkart has acquired a majority stake in FX Mart.
The rise of digital payments is upon us & one cannot afford to miss the activities on the payment business front. Along with establishing a connection with one of the most promising startups in the country, eCommerce giants Flipkart has acquired FX Mart. Since its inception in 2013, FX Mart has been touted as one of the best payment based startups in the country. The company has an agent network of more than 1000+ locations across India. Founded by Amit Narang, FX Mart has its headquarters in Mohali and a corporate office in Delhi. Flipkart has been lagging behind in the process of implementing their own payment platform. The deal amounting to Rs. 45.4 Crore, will now enable Flipkart to expand its reach in the Digital Payment sector.
According to the documents available with the Registrar of Companies (ROC), a couple of senior executives from Flipkart have also joined FX Mart. The move is initiated to curb the amount of payments Flipkart has been paying to the external wallet providers & increase the number of cashless transactions. FX Mart owns the prepaid wallet licence issued by the (RBI) Reserve Bank of India. Flipkart is planning to launch a payment service on its app. And, to take things even further, they will be launching the payment service on Myntra and third-party sites in the following months. The current market leader, PayTM will be keeping a close eye on the development.
The majority of the customers still opt for Cash on Delivery. However, players like PayTM and MobiKwik has accelerated the rise of digital wallets in India. Following the suit, several payment startups like Citrus, PayU and Zaakpay have also entered the digital payments market successfully. The Flipkart announcement comes close on the heels of RBI announcing 10 services attaining a licence to operate their own payment banks. Ola has already started its own wallet service named Ola Money and PayTM also has a new entity in the pipeline to be named PayTM Payment Bank Ltd. The Singapore registered Flipkart has been trying hard to strengthen its digital payments for a while. FX Mart is Flipkart’s second acquisition in the payments sector after NGPay. The eCommerce giants had acquired the payment startup NGPay in the year 2014.