According to sources, Ekart has added about 30 clients and is looking to onboard more as it doubles down on leveraging its internal logistics infrastructure to service non-Flipkart orders.
Before the Walmart deal in 2018, Flipkart had once attempted opening up Ekart to external platforms on a small scale but the project wasn’t expanded as the company was still figuring out how to best serve its own order volumes. “This time, they (Flipkart) are going to double down on Ekart serving non-Flipkart group orders as existing group businesses are covered at scale by the in-house logistics infrastructure,” a person aware of the matter said.
Going forward, orders for companies such as Nykaa, FirstCry and others could be delivered by Ekart. “The opening up was gradually done from January onwards and now it has about 30 companies including Snapdeal and others,” one of the sources said. Sources in third-party logistics companies also said Ekart has held talks with several ecommerce platforms to fulfill their shipments. “It looks like they are serious about it this time,” an executive at a logistics firm said.
Flipkart and Amazon India service most of their orders through their in-house logistics firms – Ekart and Amazon Transport Services — while others such as Meesho and direct-to-consumer brands work with third-party companies such as Delhivery, Ecom Express and Xpressbees.
While Ekart has opened itself up to external customers, it is unlikely to do business with Amazon India or Meesho as they are direct competitors.
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A Flipkart spokesperson declined to comment on the matter.
NFTs coming to Flipkart?
During Wednesday’s town hall, Krishnamurthy also said Flipkart was in the early stages of building its own non-fungible token (NFT)-related business. He said this in response to a question by a Flipkart employee on whether the company was looking to bring in web3-related products.
While this is a work in progress for the Bengaluru-based firm, it could be the first instance of a homegrown etailer hosting NFTs. Sources said, internally, the company is aiming to have the NFT project ready by BigBillionDays, its annual Diwali sale.
According to people briefed on the matter, Flipkart is looking to focus on the ‘localisation’ factor for NFTs. Since NFT sales in India have been low, the company is likely to double down on creating awareness, providing utility-driven NFTs and possibly linking them with physical products.
“You can’t just clone a successful model in the West, like selling a moment in sports. They (Flipkart) want to go after what the Indian audience and user understands and those are a lot more around a physical product, value and utility,” another person familiar with the plans said.
This person added that different products and brands will take different approaches to monetising NFTs and that it could include infrastructure tools for brands to use.
While plans may still change, Flipkart currently is thinking of using its flagship sale event
later in the year to unveil NFT-related products.
When is the IPO?
Krishnamurthy said the Walmart-owned etailer is working on its initial public offering but did not provide a timeline at the town hall on Wednesday. ET had reported last December that Krishnamurthy had told select executives about early work on the Flipkart IPO and that the company was looking at a timeline of financial year 2023 for its public offering.
Given the choppy markets and overall correction in valuation for large startups and ecommerce firms, this timeline may change, sources added. The matter is yet to be taken to its board for formal approval.
Flipkart was last valued at $37.6 billion in July 2021, after raising $3.6 billion in a round led by Canada Pension Plan Investment Board, the Singapore government’s sovereign wealth fund GIC, Japan’s SoftBank Vision Fund 2, and Flipkart’s largest shareholder Walmart, with participation from existing backers such as Qatar Investment Authority.
