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Tag: Flipkart Minutes

  • $40M Monthly Burn: Flipkart CEO Urged to Slash Costs

    According to reports, Flipkart, the massive e-commerce company owned by Walmart, intends to restrict the growth of its Flipkart Minutes rapid commerce division to the top six to eight cities in order to minimise capital burn.

    The top eight cities account for over 90% of quick commerce volumes, with Bengaluru, Mumbai, and Delhi NCR accounting for the majority of this, where Flipkart is expanding with Minutes.” Flipkart Minutes operates a network of over 300 dark stores, or micro warehouses, and is now available in 14 locations.

     It is a competitor to Amazon Now, Swiggy Instamart, Zepto, BigBasket’s BB Now, and Eternal-owned Blinkit. According to a media report, the goal is to grow this up to about 500–550 by October.

    Flipkart Carefully Spreading its Wings

    As a result of this action, Flipkart is now approaching growth more cautiously, similar to Swiggy, whereas Eternal is growing rapidly regardless of immediate financial gain. In the meantime, Flipkart wants to reach 500–550 customers through its dark shop channel before this year’s “Big Billion Days” promotions.

     However, analysts at broking firm HSBC Securities noted in a research note on May 12 that it is also under pressure to cut its continuous cash burn of about $40 million per month in half over the next few quarters in an effort to launch its IPO.

    The company’s intention to move its headquarters from Singapore to India in preparation for an IPO in 2026 was approved by Flipkart’s board last month. Nearly a year after Flipkart got $350 million from Google as part of a $1 billion fundraising round headed by Walmart, the domicile shift procedure was started.

    More recently, Flipkart invested INR 3,248.9 Cr in Flipkart Internet, its marketplace division, through its Singapore holding company. Flipkart has established new alliances despite limiting its goals for rapid commerce expansion.

     In order to introduce its smartphone line on Flipkart’s e-commerce platform and its Minutes rapid commerce sector, French smartphone manufacturer Alcatel formed a “retail” agreement with the company in April. Flipkart’s collaboration with Alcatel coincides with the Competition Commission of India’s scrutiny of the company’s exclusive product releases with OEMs such as Xiaomi and Samsung.

    Flipkart’s Financial Outlook

    The internet giant and competitor Amazon were found guilty by the watchdog’s internal investigation last year of breaking antitrust laws by favouring specific vendors on its platforms and engaging in aggressive pricing practices.

    Flipkart is concentrating on enhancing its financial performance as it gets ready for its public launch. Flipkart Internet’s losses decreased 41% to INR 2,358 Cr in FY24, while its sales increased 21% year over year to INR 17,907.3 Cr.

    According to its financial report, the company’s advertising earnings in FY24 exceeded its marketplace fees. The industry is one of the fastest-growing in India, with a 37% compound annual growth rate (CAGR) predicted to reach $40 billion or more by 2030, according to a report published by a media house. In 2024, more than two-thirds of all online grocery orders were placed through quick commerce.

  • Kabeer Biswas, a Co-Founder of Dunzo, is Expected to Join Flipkart Minutes

    According to a media outlet, Kabeer Biswas, a cofounder of the hyperlocal delivery service Dunzo, is expected to become the chief of operations at Flipkart Minutes. Following the departure of numerous other cofounders, including Mukund Jha, Dalvir Suri, and Ankur Agarwal, in recent months, Dunzo has been going through a difficult time. Reliance Retail, Dunzo’s biggest stakeholder, recently wiped off its $200 million stake in the business. Additionally, it was stated that due to its financial difficulties, Reliance Retail will not be purchasing Dunzo or investing more money in it.

    Denzo Navigating Through Troubled Waters

    Due to Dunzo‘s problems—such as a liquidity shortage and a retreat from fast commerce—Biswas began searching for possible purchase opportunities and reportedly valued Dunzo at about INR 300 Cr, or $25–30 million. Compared to the $770 million valuation of its most recent investment round, in which Reliance contributed funds, this represents a significant decrease. Over the past year and a half, these difficulties have caused employees’ salaries to be delayed. In addition, the business has looked into possible buyout discussions with Tata’s BigBasket and Swiggy, although the conversations most likely failed. Reliance Retail looked into the idea of purchasing Dunzo at a much lower price earlier this year. Notably, Biswas told staff members in July that major investors, such as Reliance Retail, had promised to contribute more money to the business. This funding, though, never materialised.

    In 2014, Dunzo began as a WhatsApp group and has now raised nearly $400 million from investors including Reliance, Google, Blume Ventures, Lightrock, and additional companies. Even though it developed into a strong hyperlocal competitor that faced off against Swiggy Instamart, Tata BigBasket, and Blinkit, which is owned by Zomato, the company suffered from excessive capital burn and a more competitive environment.

    With Biswas, Flipkart Miniutes Likely Gain an Edge

    Having spent more than ten years in the industry, even before rapid delivery became a popular trend just a few months ago, Biswas’s leadership of Flipkart Minutes is likely to give the Walmart-owned company an advantage over other major players in quick commerce, including Zomato-owned Blinkit, Swiggy Instamart, Zepto, Tata BigBasket, and others. Given that Flipkart Minutes launched just in August 2024—many months later than the others—and that it still has some catching up to do, this is particularly important.

    Hemant Badri, Flipkart’s senior vice president (SVP), is probably going to collaborate closely with Biswas. In April 2022, this development first appeared in the media that Badri had been given more responsibility as the leader of Flipkart’s rapid commerce initiative. Badri is the head of supply chain for the e-commerce giant Flipkart, where he has worked for more than three years.

    Reliance Retail Writes Off $200 Million Dunzo Investment
    Reliance Retail has written off its $200 million investment in Dunzo, signaling challenges for the quick-commerce platform in a competitive market.
    StartupTalkyNitin Konde