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With a massive cash pile of $ 4 Billion Flipkart is looking to expand from all centres and corners. The ecommerce behemoth seems to be spending and allocating funds to nearly all the possible venues which could help the company in sustaining growth. After coming up with their interest to buy equity stakes in Hyperlocal Services and FoodTech, the ecommerce giant is looking to sign Strategic Partnership deals with Decathlon and Fitness Startups.
Decathlon products will now be available on Flipkart with the same prices as in stores. The tie-up will also offer the sports goods company to reach their next set of 100 million + users in the tier Ii and tier III cities, where it could not have reached through retail
Speaking on the development Rishi Vasudev, Head of Flipkart Fashion, said, “This is a milestone partnership where a sports retail giant like Decathlon has chosen Flipkart as its preferred partner to expand its reach to online Indian shoppers. We are confident that with this association will further cement Flipkart’s dominance as the most-preferred online destination for every sports and fitness enthusiast.”
Here is what Flipkart is doing with $ 4 Billion they have received
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|
The company has been able to crack the magic that it wanted to bring this festive season and has successfully overshot its expectations and also beat the global ecommerce rival Amazon. According to the media reports Flipkart reached a GMV of INR 4,300 crore during its five day Big Billion Days sale which was significantly greater than last year sales amounting to a GMV of 2,300 crore (excluding fashion platforms Myntra and Jabong). On the other hand, Amazon registered a GMV of INR 2,500 crore during its Great Indian Festival Sale in September against its last year achievement of INR 1,800 crore worth GMV.
Flipkart is playing Amazon: Diversification and Strategic JVs
With a sigh of relief to sustain the organisation from the crisis that the Ecommerce Industry went through, where some of the formidable players like Snapdeal have to shut their operations partially and also sell their products and properties to earn sustenance, Flipkart is trying to perform more diligently and strategically this time. Here are some points to ponder.
- While the Discounting way of doing ecommerce in next 3-5 years, will be off the table and playing over quality of services, variety, customer services and strong supply chain shall emerge to be the key factors and focus areas for ecommerce companies in India.
- Flipkart is looking to build all that it needs to strengthen with the massive two rounds of funding that it received and thus initially has fuelled its logistics and ecommerce platform and now is on the hunt to diversify their Business on the similar trends of Amazon
- Flipkart is looking to tie up one of the top selling fashion retail brand among the masses called fashion bazaar. This move will help the organisation to be able to get inroad to retail where still the masses lie in India. Read the full story here.
- With cash in reserve the company is also looking to buy stake in some of the hot selling segments in the country viz. FoodTech, Hyperlocal Services and Fashion. Recently the company was in talks with Swiggy, Urban Ladder and UrbanClap. Read the full story here
- The Ecommerce giant is now looking to intrude in the Fitness and Sports segment and their first rider is Decathlon which has good variety of durable fitness and sport equipments that the company is trying to take online.
Amazon continues to enrich their feature and product roadmap silently
While Flipkart is trying to get into diversification, Amazon is already leveraging that big time. One of the important segment that nearly all the ecommerce companies have tried and finally decided to take off their hands from, is Groceries. Amazon has finally roped in big time, groceries in their list and now have successfully started to give competition to some of the established players like Big Basket and Grofers.
Electronics and Apparels are still a miniscule piece of what actually ecommerce could be, and the middle class household shifts from retail to online for Groceries, it could be a huge move! Read the full story Here
Here is the list of recent initiatives of Amazon in enriching its product and feature roadmap.