Flipkart appoints intermediaries to get around new FDI norms

Flipkart has appointed half-a dozen companies as intermediaries between its wholesale unit and some preferred sellers on its platform to get around the 25% cap on direct purchases from entities related to marketplaces, two people familiar with the development said.

Sports Lifestyle and Premium Lifestyle & Fashion India are among the intermediaries that will purchase products from Flipkart wholesale and supply them to preferred sellers including SuperComNet, Omni-Tech Retail and RetailNet, which will then offer them on Flipkart, they said.

Flipkart did not respond to an emailed questionnaire seeking comments. Premium Lifestyle declined to comment, while Sports Lifestyle did not respond to ET’s queries.