Flipkart’s rapid expansion points to US e-commerce company ahead of possible IPO next year
Over the past 24 months, Flipkart has forayed into several new businesses including groceries, ticketing, healthcare and social commerce. It has also doubled down on its core e-commerce proposition with strategic investments in popular offline brands. Flipkart is also moving to compete with Amazon for more affluent consumers. Until now, this was mainly in semi-urban and more value-centric areas.
With the rapid expansion, Flipkart is expected to rapidly add to its top line, increase its valuation and establish itself as India’s largest consumer internet firm – not only in e-commerce, but more and more In as many segments as possible to get Indian internet users on board. , Despite the tough regulatory environment for foreign firms, India’s e-commerce market is largely controlled by Amazon and Flipkart.
It may seem like Flipkart has a lot of pie now – a risky proposition in a challenging economic environment. But the superapp model is not new to the sector. It ties users to an ecosystem, helps in cross-selling sales between different offerings and motivates them to spend more time on the platform.
If these big bets pay off, Flipkart’s success would signal to investors that Walmart could take on Amazon in other parts of the world. That’s important because Walmart is still struggling to hold an edge against Amazon at home.
For the first time this year, total US e-commerce spending will exceed $1 trillion, according to market research firm Insider Intelligence. But it expects Walmart’s market share to hold steady at 6.3% versus Amazon’s 37.8%. Walmart’s share was actually a little over 6.5% in 2020.
Over the years, Walmart has expanded its e-commerce capabilities in the US through investments in fulfillment centers, marketplaces, and distribution. However, it is still unclear whether the company will be able to maintain the pandemic-era profit as the expenses roll back into services. If Walmart doesn’t develop a more powerful e-commerce operation, its sales and profits could be affected, warns UBS.,
A blockbuster IPO by Flipkart could be Walmart’s saving grace against Amazon—and give the world’s largest retailer a much-needed win in online shopping.
Megha Mandavia at [email protected]
Credit: www.Businesshala.com /