Walmart owned ecommerce retailer in India creates Farmermart to focus on grocery retail.
Intends to sell directly to shoppers
With an initial investment of US$350m, Flipkart has registered a new entity to focus on online grocery retailing. Through Farmermart, the company intends to begin selling fresh groceries, as well as to develop its own range of private label products. If successful, Farmermart may even consider opening retail stores in the future.
Mr. Kalyan Krishnamurthy, Group CEO of Flipkart, said, “the extended business represents an important part of our efforts to boost Indian agriculture as well as food processing industry in the country.”
Building on Walmart’s expertise
Farmermart is taking advantage of Walmart’s experience in building a strong food supply chain. Through its existing Best Price Modern Wholesale stores, Walmart already has several partnerships with local farmers for fresh produce. Farmermart plans to further develop and expand these existing relationships.
Flipkart is now applying for the required food retail licence from the government and will being operations as soon as it receives approvals.
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