Flipkart applies for food retail licence; govt approval likely in 3 months: Report
Moneycontrol had in October 2019 reported that the ecommerce major had registered an entity called Flipkart FarmerMart
March 13, 2020 / 11:33 AM IST
Walmart-owned Flipkart has sought regulatory approval for its food retail business, The Times of India reported.
Flipkart has filed an application with the Department for Promotion of Industry and Internal Trade (DPIIT), and the government may approve it within two-three months, sources told the paper.
Moneycontrol could not independently verify the report.
Moneycontrol had in October 2019 reported that the ecommerce major had registered an entity called Flipkart FarmerMart. Flipkart’s board has also approved an investment of Rs 2,500 crore to expand its grocery business.
Flipkart FarmerMart won’t have physical stores and will be an online initiative at least in the beginning,” sources told the paper.
The company will tie-up with kirana stores across India through Shadowfax, which provides last-mile delivery services, the report said.
“It will also focus on deep agri-supply chain investment, especially at the farm gate level and will encourage demand-driven sowing, which will help farmers produce right fruits and vegetables and get paid as per market price,” a source told the paper.
In India, 100 percent foreign direct investment (FDI) is permitted through the approval route.
Amazon already has a presence in India’s food retail space through its Prime Now service, having secured a food retail licence in 2017.