Flipkart looks to expand into newer businesses, in talks with firms to diversify business
India's leading e-commerce company, Flipkart is in talks with various firms to pick up a stake in order to diversify its business in the country to take on its bitter rival Amazon India.
Earlier in the month Flipkart had talks with BookMyShow to pick up a large minority stake in the company and last week it was reported that the firm is planning to buy a stake in Kishore Biyani’s Future Lifestyle Fashions to further boost its fashion segment.
Flipkart is in talks to invest in food delivery aggregator Swiggy, services firm UrbanClap and furniture startup UrbanLadder, the Mint reported, citing anonymous sources.
“Flipkart is expanding into newer businesses. The company is working on offering insurance and wealth management products. To launch this business, it has considered buying a stake in fintech start-ups,” said one of the sources cited by the Mint.
The Bangalore-based etailer currently has more than USD 4 billion in cash and looking to spend the money wisely to maintain its market dominance in the country and compete with Amazon in the country's burgeoning e-commerce market.
Flipkart had secured nearly $2.5 billion in funding from Japan's SoftBank Group in August while it had raised $1.4 billion in April from China's Tencent, online marketplace eBay and software giant Microsoft
From the $4 billion Flipkart made one of its biggest investments in the digital payments space recently with capital infusion of $500 million (approx Rs 3243 crore) to its digital wallet firm PhonePe to scale up its up technology, reach and offerings.
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