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Flipkart’s logistics arm gets offline clients, all set to create its own identity

By Meenakshi Kumar

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Retail

Flipkart’s logistics arm, Ekart, has started getting new clients among brick-and-mortar brands as it aims to become an independent logistics powerhouse which can financially boost its online retailer parent. By the end of the year, Ekart is looking at tying up with 30-50 large clients. In fact, it is estimated that a bulk of the third party clients for Ekart will come from offline retailers and brands that are seeking to build a so-called omni-channel strategy.

It is Flipkart’s new CEO Binny Bansal’s strategy to work with large offline retailers. He is looking to position the unit as a standalone business. Interestingly, Ekart has already started delivering shipments for rival etailers such as Paytm, Jabong and ShopClues. It has also won it first major offline customer – Aditya Birla group venture Madura Fashion & Lifestyle which owns brands such as Van Heusen and Allen Solly as well as multi-brand outlet chain Planet Fashion and fashion etailer Trendin.

By next year, Ekart expects to get business from non e-commerce businesses which will contribute to half its revenue. Already the division can ship five lakh orders a day and has expanded its total warehouse space to 1.6 million square feet at the end of 2015.

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