Flipkart looking to 'Chinese' model of e-commerce growth via acquisitions

flipkart

From Myntra and Jabong to PhonePe, and now talks with BookMyShow, Swiggy, UrbanClap - Flipkart could be eyeing stakes in or buyouts of smaller peers to grow its own top line


LATEST NEWS    :India’s largest home-grown internet company Flipkart is looking at acquiring stakes or buying out smaller peers to grow its own top line, a model perfected by Chinese counterparts Alibaba, Tencent and Baidu.

Flipkart is said to be in talks with multiple firms like online food-ordering and delivery service Swiggy, home services firm Urban Clap, online furniture retailer Urban Ladder, ticket-booking platform BookMyShow and even some financial technology firms, according to a Livemint report on Monday.

These deals seem to be at an exploratory stage, but Flipkart’s intent is increasingly becoming clearer. While investments in some of these firms might have obvious benefits – for example, Urban Ladder could list its furniture exclusively on Flipkart, or Swiggy’s delivery fleet could help fulfil grocery orders – what other investments will do for the company remains to be seen.


Flipkart did not respond to queries sent by Business Standard for this report.

Armed with a war chest of $4 billion to combat global rival Amazon’s growth in India, Flipkart is looking outwards for innovations and growth into newer categories. The company already has several large acquisitions under its belt, such as Myntra, Jabong and PhonePe. And, that makes Flipkart stand out among peers in the number of acquisitions and investments made so far.

Myntra and Jabong, in addition to the apparel that Flipkart sells on its own platform, currently make it the market leader in the segment. While Amazon counters this view, independent analysts agree that Flipkart sells more fashion than rivals. The number for market share, however, varies on the basis of who you ask. Similarly, while it still has a long way to go before catching up with market leader Paytm, PhonePe has already become the largest UPI payments app in the country.

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