Flipkart bets on alpha-beta tango to sync with FDI norms

NEW DELHI: Flipkart is creating a layer of B2B (business-to-business) entities that will act as intermediaries between its wholesale arm and prominent sellers on its platform to comply with foreign investment rules for ecommerce marketplaces, people familiar with the development said.

Flipkart, which Walmart acquired for $16 billion in May, has appointed eight-nine such independent entities, code-named alpha sellers, which will buy goods from Flipkart India, the wholesale arm of the Flipkart Group, according to the people.

The alpha sellers will supply merchandise to beta sellers, which will offer them on the Flipkart marketplace. The introduction of the intermediary alpha sellers will help Flipkart meet a cap of 25% on vendors purchasing goods from entities related to marketplace operators, the people said.

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