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With $ 4 Billion cash reserve, Flipkart is strategically trying to improve on some of the cash cows of their product offerings, to build on greater revenues in days to come. Couple of such product offering of the ecommerce site is exchange of old phones at a better price and services & repair on new phones such as one-time screen replacement with a price money under INR 500 for the first year.
To offer and execute such plethora of services related to mobile phones repair, it becomes crucial for the Ecommerce behemoth to partner or acquire companies like F1 Info Solutions which brings in the knowledge, execution of mobile repair for Flipkart. F1 Info Solutions comprises of 1000 employees including technicians and sales staff. As per the information available, the company handles more than 50,000 service calls every month through PAN India and is one of the few registered service partners for brands like Apple, Samsung, HP, Lenovo, Sony and Asus.
The amount for the acquisition remained undisclosed all the owned and franchised centres of F1 Info Solutions across all cities in India, will now come under a pre-owned, one-stop service point for large and small home appliances and other electronics, Jeeves.
Why Mobile Phone repair and not anything else?
Are we not aware of the Flipkart days when there 70% plus revenue use to come from the sales of exclusively launched MOTO G phones. As one of the highest selling product in consumer electronics and electronic gadgets (approx. 52%), mobile phone still drives major chunk of revenues for companies like Flipkart.
Flipkart had introduced nearly 11 smartphone models from brand like Motorola, Samsung and Lenovo, exclusively available with its ecommerce platform which is a clear indicator that the company understands the play of volume and economies of scale by driving mobile phone sales, thereby catering to the demand at the best available price across the Industry.
With the second-hand market of the mobile phone repair increasing rapidly with the short first owner consumer life cycle of smart phones, mild repairing of phones to get better pricing becomes relevant. Also companies like F1 Info Solution can further make the feature roadmap of Flipkart offer-rich by offering warranty over second hand phones by assessing the phone’s condition at the time of purchase from the consumer.
Speaking on the development, Flipkart CEO Kalyan Krishnamurthy said, “Flipkart is the top destination for mobile phones in India and having created the market for online smartphones from scratch, we’re now taking our offerings several notches higher. F1 Info Solutions is an entrenched player in this segment, and its expertise and scale is a big capability add-on for us. We’re delighted to welcome them to Flipkart. Ultimately, we want to give our customers a comprehensive service ecosystem that takes care of the repair and service needs of all their products.”