The logistics segment and the last-mile delivery for the eCommerce players is poised to the playground for investment in 2016. According to the latest developments, eCommerce bigwig, Flipkart has injected approximately $100 Million in their logistic arm.
With a motive of further firming their hold in the eCommerce market and improve the logistical side, Flipkart made some major announcement last week. Improving the overall customer experience and the last-mile delivery must be on priority for the eCommerce big players. A couple of weeks back, news surfaced that Snapdeal had invested a major chunk towards improving their logistical side. Taking on the same aggressive approach, Flipkart has also made an investment to ensure the continuous growth and making their entire system robust. The company has injected close to $100 Million (approx. INR 666 Crore) in Ekart. According to a report by the Economic Times, this investment can be termed as the second investment by the company in a short span of seven months. Both the investments fell under their newly created entity called Instakart Services. If you roll your eyes even further back, Klick2Shop Logistics Services had also invested INR 127 Crore in Instakart Services in July 2015. With competitors like Snapdeal and Amazon looking to adopt an aggressive approach in 2016, the move seems to be a smart one by Flipkart. The newly formed entity has Ankit Nagori, CBO of Flipkart and Rajnish Singh Baweja, Finance controller of Flipkart, as shareholders and directors. Since then, Ekart has expanded its total warehouse space to 1.6 million sq. ft. at the end of 2015 across 17 delivery or fulfilment centers, second only to Amazon.
If you have a closer look, the big 3 of Indian eCommerce are all looking to further strengthen their supply chain and logistics. In terms of the latest investments, Snapdeal has also invested approximately $20 Million in GoJavas. According to the report by the Economic Times, Flipkart is also looking to increase the share capital of Instakart from INR 130 Crore to INR 4000 Crore. The company is looking to further expand the reach of Ekart as an independent business. In the near future, Ekart may also cater to other companies that do not fall under the Instakart Services banner. Multiple reports have already confirmed that Flipkart is already in talks with investors to raise capital for Ekart separately. The investment news and the opening of Flipkart’s ‘Big Exchange Days’ come in close proximity. The Flipkart Dhamaka ‘Big Exchange Days’ open today and would be available on Flipkart App, Flipkart Lite and desktop site respectively. The company had earlier proposed that the Flipkart exchange program will run on the 1st and the 2nd of every month. Flipkart loyalists can exchange their old smartphones, tablets, laptops, television sets, and refrigerators with new ones under the exchange program. Flipkart executives have been trained in order to cater to the huge traffic expected for the exchange program days. With investments coming in for the logistics segment & innovative sales looking to disrupt the Indian eCommerce space, Flipkart seems to be looking at even bigger eCommerce numbers in the coming months.