Walmart-owned Flipkart has injected a fresh sum of ₹3,463 crores in its e-commerce arm Flipkart Internet, according to papers filed with Registrar of Companies. The news comes close to the festive season sales, expected to start next month.
This fresh investment will help the Indian e-commerce giant to boost sales and capture greater market share during the festive season sales, as it competes with its US-based rival Amazon.
Flipkart’s big festive sale next month is expected to focus on mobile segment, with online sales for smartphones accounting one-third of all smartphones sold in the country. It will also be looking to target new users through various discounts and other incentives.
Indian e-commerce giant leads the Indian e-commerce market with a market share of 31.9%, while Amazon is following closely with a market share of 31.5%. The festive sales will be an opportunity for both the e-commerce giants to extend their market share.
According to consulting firm RedSeer, the five-day festive sales are expected to generate around $3 billion of gross merchandise value, almost doubling the value from last year.
The recent investment of ₹3,463 crores marks one of the largest in Flipkart’s retail platform. Flipkart Internet last received ₹370 crores in from Singapore-based Flipkart Marketplace, in January.
Last month, Flipkart had slashed the commission rates across low price categories, to attract more sellers, in order to provide more choices for its customers. Recently, Amazon followed suit by reducing storage charges and seller fees across five categories.
Apart from focusing on the festive season sales, both the e-commerce giants are also looking to strengthen their online grocery business.
Last month, Flipkart launched its online grocery store Flipkart Supermart and also plans to invest ₹1,812 crore over the next three years in its grocery vertical.
With festive sales only a few weeks away, more action is expected to be seen in the Indian e-commerce space, as both the e-tailing giants look to one-up each other.