Walmart Flipkart Applies for Food Retail License

Walmart’s Indian ecommerce platform Flipkart has applied for a food retail license from India’s regulatory authorities 

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Walmart’s Indian ecommerce platform Flipkart has applied for a food retail license from India’s regulatory authorities. If granted, the license will allow Flipkart to start owning and operating food inventory in the market as per India’s foreign direct investment policy, which it plans to do through a dedicated online grocery banner, Flipkart FarmerMarket, which was registered in October last year.  

As the second-largest ecommerce banner in India behind Amazon, Flipkart’s push into groceries will help accelerate online grocery shopping in India, which is currently under-developed and accounts for less than 1% of total overall edible grocery spending in the market. Alibaba-backed BigBasket.com leads the online grocery sector in India, but both Flipkart and Amazon are showing increased ambitions in this space. India is home to a rapidly growing ecommerce market, so it makes sense that Amazon is announcing plans to launch food delivery, and Flipkart is investing in a fresh produce start-up in addition to piloting localized grocery deliveries.  

As large international retailers tap into India’s rapidly-growing digital addressable population through online grocery, suppliers should consider partnerships with these leading platforms as a route to scale their online presence. With Flipkart working with independent kirana stores to fulfil its online grocery plans, international brands should consider regional tastes and languages to underpin their go-to-market strategies. 

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