Ease of Doing Business for MSMEs: Walmart-owned Flipkart’s company-to-company (B2B) marketplace for MSMEs and kiranas — Flipkart Wholesale has added grocery category into its app about 5 months immediately after it went live in September 2020 with the style segment. Small corporations will be capable to procure goods across sub-categories such as private care, staples, beverages, cleaning and laundry, snacks, confectionery, and packaged foods from more than 350 brands such as HUL, P&G, Coca-Cola, Pepsi, ITC, Nestle, Dabur, and so forth., with the new category launch. The grocery operations will commence with Gurugram via Flipkart’s 1 lakh square feet fulfillment centre in Bilaspur – a census town close to Gurugram. The grocery vertical will be accessible to retailers in other components of the National Capital Region and will be additional rolled out in other cities in the coming handful of months.
Flipkart hoped the new addition in the app would “MSME suppliers and give regional grocery brands a fillip through a pan-India supply chain integration,” stated Adarsh Menon, Senior Vice President and Head – Flipkart Wholesale in a statement. Flipkart had launched the Wholesale marketplace with the acquisition of the wholesale company of its parent corporation Walmart in India in July final year. Walmart India Pvt Ltd operated 28 Best Price money-and-carry wholesale shops supplying practically 5,000 products. Flipkart claimed that the wholesale company at present supports more than 6,500 employment possibilities across India given that its launch in September. Currently, clothes and footwear merchandise by means of the app are supplied in 23 cities.
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According to the corporation, more than 95 per cent of the merchandise sold across its wholesale shops is locally sourced, “enabling the development of the local supplier ecosystem”. MSMEs and kiranas also have access to credit facility from Flipkart to handle their money flow along with micro-industry level B2B and B2C insights to realize neighborhood consumer demands and purchase from Flipkart Wholesale accordingly.
During its 4-month operation in 2020, Flipkart Wholesale claimed a 75 per cent month-on-month improve in consumer base and a 90 per cent jump in month-to-month transactions. Moreover, 50 per cent month-to-month development was reported in style category suppliers even though it “enabled 2.5 lakh listings on its platform since its launch,” along with one in just about every 5 clients on Flipkart Wholesale coming from Tier-II and III cities. The wholesale arm of the corporation, Flipkart India Private Limited has reported a 12 per cent jump in its FY20 revenues to Rs 34,610 crore from Rs 30,931 crore in the final monetary year even though losses had decreased 18 per cent to Rs 3,150 crore in FY20 from Rs 3,835 crore in FY19.