Latest posts by TheStartupMojo (see all)
- Big Data Startup Qubole raises $25 Mn - November 10, 2017
- After Tata, Adani Wilmar enters into ecommerce space with Infibeam - November 10, 2017
- Finally Paypal hits India, rolls out domestic payment services after a year of Demonetisation - November 9, 2017
To make operations more challenge free and at par with the International Standard, Flipkart seems to be bringing in a massive fund for Ekart to invest, acquire and innovate in the field of logistics. The ecommerce behemoth is looking forward to make sure it has substantial funds allocated to its logistics before the $4 Bn cash dries up
Around $800 million cash already allocated out of $4 Billion
With two funding rounds viz first round amounting to $1.4 billion from Microsoft, EBay and Tencent Holdings from China and next round of $2 Billion from Softbank, Flipkart is on its cash burning spree. The company has already allocated around $800 million to its various activities which would pave the way to the company’s success in the coming times. Here is the break up
|Flipkart ESOP buyback scheme||$100 Million|
|Fund allocation for Ekart||$460 Million|
|Big Billion Days + Diwali Sale||$250 Million|
Amazon is taking the innovation leap: Bringing drones to deliver product in India
While Flipkart is looking to optimize, with constant improvement in the field of Artificial Intelligence through its funding partner Microsoft, Amazon is bringing in technologies which would give the it a first mover advantage and help taking product and revenue leap from Flipkart.
Amazon has filed a patent to obtain exclusive rights on multi-scale fiducials. Fiducials are a combination of black and white marks on delivery products that helps them to be get identified by drones over a distance.
With Indian subcontinent drones may be a good and effective way to deliver in metro cities however with the flora and fauna of India has, it may take a little while for this level of technology to actually and practically work.
Conquering India means taking leap globally
India is the fastest growing Ecommerce Markets across the Globe. According to Forrester Research, one fifth of total retail sales (approx.)will take place online by or before 2021 in Asia Pacific. The major pie of 78 percent of that will be coming from mobile (against 63 percent in 2016). The study further adds that online retail via mobile will grow at CAGR of 15.6 percent, to reach $1 trillion in 2020 nearly double from $539 billion in 2016. The report also concluded that China may remain the largest market for e-commerce globally, followed by the US; but it is India that is the fastest-growing e-commerce market.