Ekart Logistics secures ₹641 crore funding from Klick2Shop Logistics Services

eCommerce firms in India are now focusing more on improving their logistics service to ensure better customer experience. In line with this, Flipkart’s logistics arm Ekart Logistics has raised a new funding round.

As per the documents filed with the Registrar of Companies (RoC), Klick2Shop Logistics Services International, which is a Singapore-based group firm, has invested around ₹641 crore in Ekart.

This comes at a time when most firms are now looking to strengthen logistics network to provide smooth delivery of the heavy load of shipments during the festive season.

As per the industry experts, more than 70 percent of Flipkart’s logistical needs are being fulfilled by Ekart, a number which is slowly inching towards 80 percent.

Since earlier this year, Flikart has been consolidating its logistics arm. The company suspended customer-to-customer courier service within months of its launch. It also pulled the plug on hyperlocal delivery services that was piloted across Bengaluru.

It now focuses on core eCommerce offerings, including third-party logistics services to eCommerce players such as Paytm and ShopClues. It also continues to provide warehousing and fulfilment facilities to larger retail clients such as Madura Garments.

An analyst, who is tracking this space, said to Economic Times:

Apart from setting up more fulfillment centres and last-mile delivery centres, they may also look at offering Ekart services to other companies. They may also be expanding their network to include grocery services, which are expected to be launched by December at the earliest.

Alibaba-backed Paytm Mall is also focusing on improving logistics service, and has pumped in around ₹224 crore from offering same-day and next-day delivery options.