Flipkart injects Rs 666 crore in Ekart

One of India's E-retail giant Flipkart infused Rs 666 crore in Ekart through a Singapore-based group firm on January 21.
Flipkart infuses in Ekart

One of India’s E-retail giant Flipkart infused Rs 666 crore in Ekart through a Singapore-based group firm on January 21.

This is Flipkart's second fund infusion in seven months into the logistics business that's housed under a newly created entity called Instakart Services after it bought back Ekart from WS Retail.

It was Klick2Shop Logistics Services International, which earlier invested Rs 127 crore in Instakart Services in July.

The latest fund infusion takes place when Flipkart is aiming to maintain its lead in the etailing market, which is estimated to expand to $36 billion (about Rs 2.45 lakh crore) in 2016-17 from $11billion in 2014-15 as it competes with Amazon's logistics prowess. Ekart had expanded its total warehouse space to 1.6 million sq ft at the end of 2015 across 17 delivery or fulfillment centres.

An investor tracking the logistics space said that it's almost like a cold war; the larger the warehousing capacity, bigger the 'Big Billion Day' sales. Interestingly Snapdeal has infused Rs 250 crore into GoJavas in two rounds of funding.

Flipkart, through Instakart, is likely to increase investments further in logistics. It has taken enabling approval of its board to increase the share capital of Instakart from Rs 130 crore to Rs 4,000 crore, creating a possibility of more infusion.

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