Walmart's Flipkart is making another push to compete with Amazon

Flipkart is in talks to acquire e-commerce services provider ANS Commerce, according to three people aware of the development .

“ Flipkart is in advanced talks to acquire ANS Commerce for Rs 250-300 crore , ” said one of the people aware of the development .

It is understood that ANS Commerce is a startup that helps brands sell online. It provides brand store technology, marketing, management, warehousing and fulfillment services.

Although it is a startup company, the strength of ANS Commerce cannot be underestimated.

Currently, ANS Commerce cooperates with more than 100 brands, such as Jack & Jones, Vero Moda, HUL , etc. Not only that, the company received $2.2 million in Pre-A round of financing a while ago.

According to the company, it will expand to 150-180 brands by the end of this fiscal year. Riding on the direct-to-consumer ( D2C ) wave, the company plans to generate 30% of its revenue from D2C brands.

“ The acquisition will provide Flipkart with a new business line and increase its exposure among emerging and existing D2C brands , ” said a person familiar with the matter.

In fact, ANS Commerce is a part of Flipkart’s accelerator programme Flipkart Leap, which was announced by the e-commerce giant in January this year. Entropik Tech, Fashinza, Gully Network, Piggy, Tagbox Solutions, Unbox Robotics and Fasal were also selected for the programme .

If the deal goes through , ANS Commerce will be Flipkart ’s third acquisition in fiscal 2022. In the past two fiscals , Flipkart has acquired five companies, including Scapic, Mech Mocha, Walmart’s B2B business , etc.

Apart from acquisitions, it has also invested in Ninjacart, Shadowfax, Aditya Birla Fashion Retail Limited, Arvind Fashions and USPL.

As we all know, Flipkart is one of the few local e-commerce platforms that can compete with the giant Amazon. Currently, Flipkart occupies about 15% of the Indian retail market, while Amazon India ranks second with less than 10% market share.

From the above layout, it can be seen that Flipkart is gradually expanding its e-commerce ecosystem , seemingly competing with Amazon.

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