To become profitable and maintain its growth, eCommerce firm Flipkart has invested around $100 million in its logistics arm, Ekart which was acquired from WS Retail Services Pvt in September 2015. The investment was made through a Singapore-based group firm, Klick2shop Logistics Services which previously invested around $20 million in Ekart.
Ekart falls under Instakart Services which is a new subsidiary of Flipkart. It has expanded its total warehouse space to 1.6 million sq ft at the end of 2015 across 16 delivery or fulfillment centres.
Flipkart has taken approval from its board to ramp up investments further in logistics from $20 million to $600 million. Its rival Snapdeal also made an investment of $20 million (Rs 131 crore) in to GoJavas in October 2015 to strengthen its supply chain and logistics.
With its current capital infusion into logistics, Flipkart is planning to maintain its leadership in etailing market, which is expected to be $36 billion in the year 2016-17 from about $11 billion in 2014-15, as per Goldman Sachs report.Category Investments News