Flipkart Aims to Rival Amazon Now by Expanding E-Grocery Store to 5-6 Major Indian Cities

Flipkart, the Bengaluru-based e-commerce portal is planning to expand its online grocery service- ‘Supermart’ to 5-6 major Indian cities by the end of the year as it plans to take on leading players such as BigBasket, Grofers and Amazon India. The company plans to expand the service, which currently covers all major pin codes in Bengaluru, in 5-6 major cities by the end of 2018, Flipkart said in a statement. The development comes a day after the Competition Commission stated that it has cleared US retail giant Walmart’s proposal to acquire 77% stake in Flipkart, a deal estimated to be worth USD 16 billion.

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The deal, which was announced in May, will see significant shareholders like SoftBank Vision Fund, Naspers, venture fund Accel Partners and eBay exiting the Bengaluru-based company.

In its statement today, Flipkart said its groceries portfolio currently spans staples, FMCG and dairy products, and that the category can be accessed through its Android and iOS mobile apps, as well as its desktop and mobile websites.

Grocery segment accounts for a significant portion of the unorganised retail segment in the country. With people becoming comfortable buying even milk and bread online, the online grocery segment is projected to witness strong growth over the next few years in India.

As per estimates, e-tail is just 0.5% of the total grocery market in India, which is pegged at USD 400 billion, or 70% of all retail.

“While the miniscule penetration is an indication of the scope for future growth, it is also reflective of the need for innovation in a category that has the highest potential to generate repeat business and ensure customer retention,” Flipkart said.