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Flipkart Invests USD 201 Million In Wholesale Unit Amid E-commerce Market Shake-up

Going into last year, the e-commerce market in India was already a hotly competitive one in which Amazon was challenging Flipkart, and making headway, for a share in a rapidly evolving market. That was all before Walmart spent USD 16 billion for an approximately 77 percent stake in Flipkart, however, making India the latest battleground for the ongoing tussle between the two U.S. heavyweights.

Even in the last couple of months, things have become more intriguing, as Google recently entered the fray with shopping search services, Flipkart’s CEO suddenly departed over personal misconduct allegations and Amazon upped its game with a Hindi language mobile app. Now Reliance is jumping into the e-commerce market with ambitions to beat both Flipkart and Amazon.

Add in a new set of proposed regulations that could drastically alter how Flipkart and Amazon have been doing business in this market, along with their prospects for future revenue, and there’s a sense that almost anything can happen in India’s e-commerce market in the coming years.

Flipkart’s investment in its wholesale unit appears to be part of its preparation for the market changes ahead, although it’s not entirely clear how the money will be used. In any case, market watchers shouldn’t be surprised if Flipkart has some big strategic announcements in the near future as one of the world’s most exciting e-commerce markets continues its bumpy evolution.―Retail Dive

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