Flipkart looks to strengthen logistics network, infuses Rs 640 crore into Ekart

By

Maverick Martins

Published
Oct 3, 2017

India’s top online retailer Flipkart is looking to strengthen its logistics network with a capital infusion Rs 641 crore  ($98 million) into its logistics arm Ekart through an entity called Instakart Services Private Limited, according to regulatory filings with the Ministry of Corporate Affairs.
 

Flipkart has raised the funds from its Singapore-based group firm Klick2Shop Logistics Services International. The company had made a similar infusion of Rs 666 crore (approx $102 million) into its logistics arm 2 years ago.
 
In order to maintain its lead in the e-commerce market Flipkart has been investing heavily to boost its infrastructure, technology and logistics network.

Flipkart claimed to have achieved sales worth Rs 5,000 crore rupees ($752 million) over their latest e-commerce sale festival entitled “Big Billion Days”.

In order to generate high revenues in the upcoming festival season the company is looking to scale up its logistics unit to ensure faster deliveries across the country.
 
Flipkart rival Amazon ensures one day delivery of all products to its prime customers. Prime membership continues to be the best selling product for the Seattle based giant during all its sale events. Flipkart is hoping to offer similar services by boosting Ekart, which currently fulfills approximately 80 percent of the company’s logistical needs in the country.
 
Flipkart had bought its logistics arm Ekart in 2015 from WS Retail Services, the largest retailer on its platform.
 
Flipkart last month introduced an innovative "anti-theft" packaging to secure its high net and luxury goods from in-transit theft and tampering. The new technology helps its logistical unit as it reduces packaging material cost, packing process (IPP) and shipment volumes, giving it a competitive edge over other e-commerce players.