Flipkart to soon enter into the food retail business through 'FlipMart'

E-commerce platform, Flipkart is entering into the food retail segment with its new entity called Flipkart FarmerMart. This move will help the platform to directly compete with its rival Amazon in this segment. With an equity capital amount of Rs 1,845 crore, FarmerMart will be selling the produce locally.  

“In line with the Government of India's FDI (foreign direct investment) policy, which allows 100 per cent FDI in food retail for food produced and manufactured in India, Flipkart is applying for the appropriate licenses from the government,” Kalyan Krishnamurthy, the company’s group chief executive officer, said.

“We’ve secured all internal approvals for the same already. We’re looking forward to invest more deeply in local agri ecosystem, supply chain and working with small farmers, farmer producers’ organisations (FPOs) and the food processing industry in India, helping multiply farmers’ incomes and bring affordable, quality food for millions of customers across the country,” Krishnamurthy said.

The Franchise India report had suggested that the online grocery market is expected to be worth Rs 2.7 billion by 2019. Walmart which already has cash and carry stores and connections with the farmers across the country will help Flipkart in running its new entity.