Amazon or Flipkart did not immediately comment on the report….reports Asian Lite News
Foreign e-commerce players like Amazon and Walmart-owned Flipkart are circumventing rules and laws in their relentless pursuit of capturing the Indian market, often resorting to unethical business practices, Praveen Khandelwal, Secretary General, Confederation of All India Traders (CAIT) and a BJP candidate for Lok Sabha, said on Saturday.
Reacting to a TV media report that the Competition Commission of India (CCI) has found alleged irregularities in its probe against e-commerce companies like Amazon and Flipkart and their links with mobile manufacturers, Khandelwal told IANS that this “nexus” between e-commerce giants and mobile companies “undermines the country’s broader interests.”
Amazon or Flipkart did not immediately comment on the report.
“For years, we have been highlighting the persistent problem of foreign e-commerce companies circumventing rules and laws in their relentless pursuit of capturing the Indian market, often resorting to unethical business practices,” said Khandelwal, BJP candidate from Chandni Chowk Lok Sabha constituency in the Capital.
He said that this “intricate web” involves collaboration between e-commerce giants and mobile companies, which undermines the country’s broader interests and “threatens the livelihoods of small traders.”
In February this year, the retail traders’ body had written to the CCI, seeking urgent steps in the Delhi Vyapar Mahasangh case involving the anti-competitive practices of Amazon and Flipkart.
In a letter to the CCI Chairperson Ravneet Kaur, the CAIT said the market regulator “must attach utmost priority to the case and pass final penalty order and direction to Flipkart and Amazon to stop their illegal activities, as the outcome of the case has a serious bearing on the survival of lakhs of retailers and their families.”
“These foreign entities have indulged in monopolisation of sales of mobile phones through exclusive launch,” the CAIT letter had alleged.
Khandelwal told IANS that it is imperative that decisive action be taken against these companies now.
“Once the general elections are concluded and if elected as an MP, I am committed to advocating for addressing this issue,” he added.
With Flipkart UPI, users can now set up their own UPI handle for online and offline Merchant transactions within and outside of the Flipkart marketplace….reports Asian Lite News
E-commerce marketplace Flipkart on Sunday launched its Unified Payments Interface (UPI) handle to further enhance its digital payment offerings for all customers, including its 500+ million customers.
With Flipkart UPI, users can now set up their own UPI handle for online and offline Merchant transactions within and outside of the Flipkart marketplace. For a distinctive customer experience, loyalty features such as Supercoins, Cashback, Brand Vouchers, Milestone benefits and more will be offered post the UPI launch.
On the Flipkart app, Flipkart UPI can be used to pay for any product or service, including e-commerce transactions, Scan and Pay to UPI ID, and recharges and bill payments, the company said in a statement.
In its first phase, Flipkart has partnered with Axis Bank, wherein users can register for UPI with @fkaxis handle for their digital transactions using the Flipkart app.
“Recognising the dynamic digital landscape, the launch of Flipkart UPI seamlessly merges the convenience and cost-effectiveness of UPI with the trusted efficiency customers expect from us,” said Dheeraj Aneja, Senior Vice President – Fintech and Payments Group at Flipkart.
“At Flipkart, we are committed to delivering the best-in-class commerce experience to customers by offering safe and convenient payment options along with a wide array of rewards and benefits such as Supercoins, Brand Vouchers, and others.”
According to Aneja, “Flipkart UPI underscores our dedication to shaping a digitally-empowered society and reaffirms our role as a leading catalyst in India’s digital evolution.”
It also introduces one-click and quick functionalities for recharges and bill payments, enhancing overall payment efficiency for the users.
With the tagline, ‘India’s Most Rewarding UPI’, the offering aims to provide customers an intuitive, safe, and convenient digital payment experience through its integrated checkout funnel and a slew of delightful incentives including the benefit of instant refunds, according to the company.
In 2023, UPI processed over 117 billion transactions worth Rs 182.84 trillion, showcasing a dynamic landscape with participation from banks, payment service providers, and fintech companies, according to reports.
“We continue to scale our growth in UPI with partnerships and innovations. Our partnership with Flipkart has come a long way from launching one of India’s most successful co-branded credit cards to now launching the Flipkart UPI service,” said Sanjeev Moghe, President and Head – Cards & Payments, Axis Bank.
“Customers can now register for UPI with @fkaxis handle and can do all fund transfers and checkout payments using the Flipkart app. This solution is cloud hosted and hence provides one of the most stable and scalable UPI platforms for customers,” he added.
According to the filings, the company is registered in Singapore and was founded in May 2021….reports Asian Lite News
Flipkart co-founder Binny Bansal has come up with a new venture – ‘OppDoor’, which will help e-commerce companies expand operations globally by providing them with end-to-end solutions, a media report said on Tuesday.
According to the filings, the company is registered in Singapore and was founded in May 2021.
OppDoor was previously known as Three State Ventures Pte Ltd, reports Moneycontrol.
OppDoor will first target e-commerce businesses in the US, Canada, Mexico, the United Kingdom, Germany, Singapore, Japan, and Australia.
India does not find a mention on the website yet, the report noted.
According to the company’s website, OppDoor provides “a comprehensive suite of services.”
It adds that OppDoor’s services “span a brand’s complete lifecycle, from birth to exit. Hence, we provide both fully managed operations and business advisory services”.
The website also mentioned, “OppDoor delivers fully-managed Amazon services aimed at expanding your private label brands across multiple regions globally.”
“Brands with multi-region presence walked away with 3x higher exit multiples compared to brands selling in only one or two Amazon regions,” it added.
Three State Ventures is Bansal’s Singapore-based venture capital firm. The firm has backed various firms in India, including Curefoods, Scapia, and others, the report mentioned.
Last year, Bansal sold his remaining stake in Flipkart and received about $1-$1.5 billion from his shareholding in Flipkart.
Binny, along with Sachin Bansal, exited Flipkart after selling it to Walmart in 2018 for around $16 billion. Binny has backed around 60 startups, like Acko, Ather Energy, Curefoods, Cultfit, BrightChamps, Unacademy, Yulu and others.
There was a 60 per cent increase observed in Flipkart Plus memberships, compared to last year….reports Asian Lite News
E-commerce major Flipkart on Sunday said it’s 10th edition of ‘The Big Billion Days’ (TBBD) festive sales witnessed a record 1.4 billion customer visits over early access sale and seven days of the shopping festival.
Flipkart’s kirana partners delivered over 4 million packages in the first 4 days of TBBD 2023. The company said that seller success reached new heights with 2 times “crorepati seller growth over TBBD 2022”.
There was a 60 per cent increase observed in Flipkart Plus memberships, compared to last year. Transacting sellers saw a 2.5 times increase in their business, compared to the pre-festive period.
“In this milestone year, we continue to spread festive cheer by creating 1 lakh new job opportunities across our supply chain, including fulfillment centres, sortation centres and delivery hubs,” said Kalyan Krishnamurthy, CEO, Flipkart Group.
“This year’s ‘The Big Billion Days’ has received great response from both customers and our extensive network of sellers across the country,” he added.
Choices in smartphones, laptops, tablets and home appliances indicate a strong “premiumisation” trend pan-India this year. The premium smartphone segment grew 1.7 times over TBBD 2022, enabled by a wide range of affordability levers.
Flipkart’s Samarth programme enabled a large community of weavers and artisans to bring over 3.5 lakh products across home, furnishing and lifestyle categories.
Samarth sellers observed a 6 times growth compared to the pre-festive period, said the company.
“FireDrops 2.0”, Flipkart’s web3 engagement and rewards platform, witnessed success with a user base of over 2 million participating in brand engagement challenges from more than 30 brands, winning NFT-based shopping rewards.
Electronics, travel and mobiles are some of the categories which witnessed higher traction for premium choices
Amazon India has created more than 100,000 seasonal job opportunities across its operations network for the festive season…reports Asian Lite News
E-commerce giants Amazon, Flipkart, Myntra and others on Sunday began the festive season sales in India which is expected to reach Rs 90,000 crore worth online gross merchandise value (GMV) in the festive month — up 18-20 per cent from last year’s festive month sales.
Driven by about 140 million shoppers, online sellers, especially small ones, expect at least a 15 per cent jump in festive sales year-on-year, with the median growth figure of 26 per cent sales increase expected, according to market intelligence firm Redseer Strategy Consultants.
Amazon India has created more than 100,000 seasonal job opportunities across its operations network for the festive season.
The opportunities include direct and indirect jobs in cities such as Mumbai, Delhi, Pune, Bengaluru, Hyderabad, Kolkata, Lucknow and Chennai, among others. Myntra’s Big Fashion Festival, is now live with more than 23 lakh fashion, beauty and lifestyle products from over 6,000 leading international, domestic and D2C brands.
During the event, customers will have access to unmissable offers on thousands of domestic and international brands, as well as an additional 15 per cent off on using Myntra’s co-branded credit card in association with Kotak Mahindra Bank, to unlock more value on their festive purchases. Additionally, the shoppers can avail payment offers through partners like ICICI, Kotak, Paytm and Cred.
Snapdeal has also launched the first sale of the festive season called the ‘Toofani Sale-Festive Dhamaka’, from October 8-15. Consumer electronics brand Samsung has rolled out mega deals on a wide range of its televisions for the much-awaited festive season.
The offers are on Neo QLED TV, OLED TV, Crystal 4K iSmart TV, Crystal Vision 4K TV, QLED 4K TV, The Frame TV and more. “At Samsung, we are committed to enhance this festive cheer for our customers through exciting offers on our televisions. We are confident that our unique offers will add more joy to this festive season,” said Mohandeep Singh, Senior Vice President, Visual Display Business, Samsung India.
On purchase of select Neo QLED 8K & 4K TVs, consumers can get a free Galaxy S23 Ultra 5G worth Rs 124,999, a 50-inch The Serif TV worth Rs 69,990, The Freestyle projector worth Rs 59,990 or a Soundbar worth Rs 49,990, along with a 3-year comprehensive warranty on the Neo QLED TVs.
In exclusive partnership with top online retailer Flipkart, Blaupunkt, a German electronics brand, has announced hefty discounts on the whole range of TVs during the Flipkart’s ‘Big Billion Days’. Blaupunkt will offer customers incredible savings of up to 80 per cent on Smart TVs and appliances. The all-new TVs will start at an attractive price of Rs 6,299. The newly-launched 43-inch QLED is available at Rs 28,999.
“Flipkart’s The Big Billion Days accompanying the festive season is a great opportunity for us to provide our customers with Blaupunkt’s exceptional TVs to experience premium affordability,” said Avneet Singh Marwah, CEO of Super Plastronics Pvt Ltd (SPPL), exclusive brand licensee of Blaupunkt TVs in India.
According to Jagjeet Harode, Vice President – Electronics, Appliances and Private Brands at Flipkart, the customers across India can elevate their viewing experience by upgrading their TVs. “This collaboration with Blaupunkt’s new range is a significant addition to our marketplace, bolstering our offerings as we approach the festive season,” he said in a statement.
SPPL aims to do an overall business worth Rs 500 crore this festive season. In the smartphone segment, all major players have announced exciting promotions. Around 42 per cent Indians plan to buy a premium smartphone (Rs 30,000 and above) this festive season, and 5G, latest processor and RAM are the top specifications while making the purchase, according to Counterpoint Research.
Samsung, Apple and OnePlus are the most preferred brands this festive season. HTech, a comprehensive solutions provider, has announced their first festive sale offer for the latest HONOR 90 5G in India, offering discounts up to Rs 11,000.
According to the company, HONOR 90 can now be purchased at Rs 26,999 this festive season. OnePlus has extended offers to the recently launched OnePlus 11, OnePlus 11R, including the new OnePlus 11R Solar Red, as well as OnePlus Nord 3, the new OnePlus Pad Go and many more.
Starting October 7, the offers on the entire product portfolio are now live. Amazon has announced exciting offers on Echo, Fire TV, and Kindle devices during its ‘Great Indian Festival 2023. Customers can avail up to 55 per cent off on Echo smart speakers, Fire TV devices, Kindle e-reader, and Alexa smart home combos, said the company.
These seasonal jobs include local Kirana delivery partners, women, persons with disabilities (PWDs), and others, thus creating avenues for diverse supply chain talent….reports Asian Lite News
E-commerce major Flipkart on Monday said that it will generate over 1,00,000 direct and indirect jobs across its supply chain, including fulfilment centres, sortation centres, and delivery hubs, ahead of the festive season.
These seasonal jobs include local Kirana delivery partners, women, persons with disabilities (PWDs), and others, thus creating avenues for diverse supply chain talent.
“This year, we are also creating over a lakh new job opportunities in our supply chain while also investing in skilling initiatives to deliver an elevated customer experience as we strengthen our footprint across the country. This year, we plan to deliver more than 40 per cent of shipments through our Kirana delivery programme,” Hemant Badri, Senior Vice President and Head of Supply Chain, Customer Experience, and ReCommerce, Flipkart Group, said in a statement.
Moreover, the company said that Flipkart has scaled its supply chain with last-mile distribution hubs and large-scale fulfilment centres this year, strengthening its reach in tier-III cities and beyond.
It has added more than 19 lakh square feet of space across Uttar Pradesh, Gujarat, Bihar, Punjab, Rajasthan, Telangana and many more states.
To provide a delightful end-customer experience, the e-commerce giant said that it undertakes specially curated skilling initiatives through its training programmes for the workforce that joins the supply chain, which also helps significantly boost local employment and the economy.
All hired personnel undergo training in the supply chain process for their respective function and are trained to handle Hand-Held Devices, PoS Machines, scanners, various mobile applications, and more. As a result, these employees become future-ready to work in tech-driven supply chains, food tech, and other allied industries.
Bansal reportedly received about $1-$1.5 billion from his shareholding in Flipkart….reports Asian Lite News
Retail giant Walmart has paid around $3.5 billion to acquire shares in e-commerce major Flipkart from non-controlling stakeholders, including co-founder Binny Bansal and top investment firms Tiger Global and Accel, among others.
In a Securities and Exchange Commission (SEC) filing in the US, the company said that during the six months ended July 31, 2023, “the company paid $3.5 billion to acquire shares from certain Flipkart non-controlling interest holders and settle the liability to former non-controlling interest holdersof PhonePe”.
Additionally, during the six months ended July 31, the company received $0.7 billion related to new rounds of equity funding for the company’s majority-owned PhonePe subsidiary.
Bansal reportedly received about $1-$1.5 billion from his shareholding in Flipkart.
Binny, along with Sachin Bansal, exited Flipkart after selling it to Walmart in 2018 for around $16 billion.
Last year, Binny Bansal sold his stake worth $264 million (more than Rs 2,000 crore) in the homegrown e-commerce platform to Chinese Internet giant Tencent.
In July, retail giant Walmart paid $1.4 billion to acquire VC form Tiger Global’s remaining shares in Flipkart. According to a report in Wall Street Journal, Walmart paid the money to boost Flipkart’s stake.
Walmart purchased Tiger Global’s remaining holding in Flipkart to further cement its control of the Indian e-commerce giant.
Tiger Global made an overall gain of $3.5 billion on an investment of $1.2 billion.
Flipkart was earlier valued at $37.6 billion in a 2021 funding round. Walmart had 72 per cent share in Flipkart as last reported.
Walmart purchased Tiger Global’s remaining holding in Flipkart to further cement its control of the Indian e-commerce giant…reports Asian Lite News
Retail giant Walmart has reportedly paid $1.4 billion to acquire VC form Tiger Global’s remaining shares in the e-commerce major.
According to a report in Wall Street Journal, Walmart has paid the money to boost Flipkart’s stake.
“Purchase of shares from Tiger Global values the Indian e-commerce company at about $35 billion,” the report said late on Sunday.
Walmart purchased Tiger Global’s remaining holding in Flipkart to further cement its control of the Indian e-commerce giant.
Tiger Global made an overall gain of $3.5 billion on an investment of $1.2 billion, reports mentioned.
Flipkart was earlier valued at $37.6 billion in a 2021 funding round.
Walmart had 72 per cent share in Flipkart as reported last.
Tiger Global held a 4 per cent stake in the e-commerce leader.
Last month, Flipkart began a “one-time discretionary” cash payment of $700 million to employees following its separation from fintech firm PhonePe.
In an email to employees, Flipkart Group chief executive Kalyan Krishnamurthy said, “We have exciting times ahead, and as we continue to grow across businesses, I look forward to your continued dedication and determination to bring about the future that we envision and scale new heights together.”
The PhonePe Group was acquired by the Flipkart Group in 2016.
The Flipkart Group is one of India’s leading digital commerce entities and includes group companies Flipkart, Myntra, Flipkart Wholesale, Flipkart Health+ and Cleartrip.
Started in 2007, Flipkart has enabled millions of consumers, sellers, merchants, and small businesses to be a part of India’s digital commerce revolution, with a registered customer base of more than 400 million, offering over 150 million products across over 80 categories.
Some of Flipkart’s key investments in Telangana include the establishment of six fulfillment centers for making millions of products, including home appliances, furniture, large appliances, and grocery available…reports Asian Lite News
India’s leading e-commerce player Flipkart has expanded its footprint in Telangana and strengthened its supply chain infrastructure with the launch of a new fulfillment center in Sangareddy.
The facility will support the delivery and logistics of a wide range of product categories, including furniture and large appliances, offered by thousands of local sellers and MSMEs in Telangana, providing them access to a national market.
Spread over 4 lakh square feet, the fulfillment centre will further Flipkart’s commitment to India’s digital commerce evolution by empowering local sellers, employable youth, and customers while making e-commerce more inclusive and accessible.
Flipkart said its supply chain operations have contributed to the growth of Telangana’s economy by creating over 40,000 direct and indirect jobs.
The company’s e-commerce platform has so far empowered more than 14,000 sellers in the state to join the mainstream economy and cater to the rising consumer demand in the country.
Telangana’s minister for industry K. T. Rama Rao virtually inaugurated the fulfillment centre virtually from Hyderabad. Government of Telangana Secretary for industry and commerce Jayesh Ranjan, Flipkart Group CEO Kalyan Krishnamurthy were also present.
Some of Flipkart’s key investments in Telangana include the establishment of six fulfillment centers for making millions of products, including home appliances, furniture, large appliances, and grocery available. With close to 100 distribution hubs in the state, it collectively generates over 40,000 job opportunities.
About 5,000 kiranas in Telangana, are also associated with Flipkart’s Kirana Delivery program, making lakhs of deliveries that augment their income. Last year, Flipkart signed an MoU with the Society for the Elimination of Rural Poverty to promote market access and growth for Farmer Producer Organizations and Self-Help Groups in Telangana, to enable access for them to Flipkart’s pan-India customer base.
Flipkart has a green data center located in the state, powered by renewable energy, that strengthens the technology infrastructure and underlines the company’s efforts towards building a sustainable value chain.
Speaking on the occasion, minister KTR suggested to Flipkart to create a model for the rest of the country by taking good care of gig workers.
“As we go along the journey in e-commerce business, we must take care of the gig workers. We should ensure that they feel secure, and their livelihoods, families are protected. It’s our duty to see to it that they are not affected by factors extraneous and beyond their control. We should build credibility, and aspiration among youngsters to work in the e-commerce sector. Let’s create a unique model that will serve as a statement from Telangana,” he said.
He suggested a model that includes a tripartite arrangement among government, e-commerce companies, and marketing vendors and partners to safeguard the livelihoods of the gig workers.
The minister also suggested that the e-commerce companies join hands with Telangana Academy of Skills and Knowledge (TASK) to create a readily employable workforce with required skills.
He observed that the centricity of Telangana makes it an ideal place to become a logistic hub, hub to disseminate services and good to eight states adjoining it and connecting point between North and South.
KTR also suggested that the company use the services of women self-help groups to employ more women and provide better livelihood opportunities in rural areas.
According to industry estimates, the Flipkart group generated a loss of more than $1 billion in FY22, making it one of the top loss-making Indian unicorns….reports Asian Lite News
As recent reports claim how Walmart-backed Flipkart processed more orders than any of its rivals during the festive sales, these figures conceal the enormous financial loss that Flipkart has sustained, in an effort to remain relevant to the Indian consumers.
Flipkart spent more than $3.7 billion over the course of the year, following its latest round of funding in July 2021 to maintain consumer attention in a market dominated by Amazon as well as more recent domestic firms.
This burn rate of $3.7 billion is the greatest for any Indian firm, not just in the e-commerce industry.
According to regulatory filings, only roughly $700-800 million of the approximately $3.6 billion (about Rs 29,000 crore) raised by Flipkart in July last year remains.
Flipkart had $1 billion in cash in July 2021, but by September 2022, it had dropped to $887 million.
According to industry estimates, the Flipkart group generated a loss of more than $1 billion in FY22, making it one of the top loss-making Indian unicorns.
Its difficulties in charting a clear route to profitability, as well as its mounting losses, appear to have alarmed even Walmart.
Seller dissatisfaction, on the other hand, continues to plague Flipkart and is rising in magnitude with the company.
Currently, 20-30 per cent of Flipkart’s sales come from alpha sellers – preferred suppliers that buy from the business’s wholesale arm and help the company lawfully run an inventory-led model.
The marketplace, according to small sellers, prioritises products from these alpha merchants, resulting in decreased volumes for them.
Furthermore, the company’s private labels have enraged small sellers, who claim the site uses their data to create competing merchandise.
Moreover, a lot of small sellers claim that after making several sales on Flipkart, the outstanding receivables – the final settlement sum that the e-commerce giant pays after deducting the commission, shipping fee, and other expenses, end up being negative.
They often learn about this extremely late, which just makes matters worse. Unknown and delayed deductions from their accounts are one of the most frequent problems that sellers have.
Since they get debits after closing the books of accounts for the financial year, this makes it challenging for sellers to tally their balance sheets. Despite the fact that this isn’t an industry norm, it is still practiced by Flipkart.
These deductions frequently go unexplained and are challenging to substantiate in the context of the particular order against which they were levied.
Today, most vendors are caught in a losing scenario. The fact that only 5 per cent of the sellers control about 95 per cent of the business puts small sellers in a tough position and makes opting to exit a challenge.
In another claim, it was learnt that Shopsy was introduced by Flipkart at 0 per cent commission, and much of the merchandise from Flipkart was put on Shopsy without the vendors’ consent.
Although it initially provided decent margins for merchants, Flipkart upped shipping charges for sellers within a few months and has revised it several times since then, making it a very unstable platform for sellers with more ambiguity than clarity.
Being inconsistent with its regulations in the face of increased competition seems counterintuitive for a seasoned e- commerce company.
Because ofthe fluctuating commissions and other fees imposed by the e- commerce company, small sellers often end up feeling the squeeze more intensely.
It is understandable why the business has come under the scanner of the Competition Commission of India, an antitrust watchdog, for a number of reasons, including giving certain vendors special treatment.
In this context, the recently launched Open Network for Digital Commerce (ONDC) poses a challenge to Flipkart since the government-led project enables small merchants to list directly and pay far less for marketplace commissions.
