Flipkart plans to tap 50,000 MSMEs for expanding in small towns

Online marketplace giant Flipkart plans a major drive to bring 50,000 medium and micro, small and medium enterprises (MSMEs) under their fold by the end of this year. The company claims to have almost 100,000 MSMEs on the platform. This move, the firm believes, will create a million secondary jobs as part of the necessary logistics that would have to be in place for rapid growth.

For Flipkart, onboarding MSMEs as sellers on the platform is crucial as it will help the firm in sourcing maximum number of categories locally as well as help in faster deliveries and cut logistics costs. In the next phase of growth, which heavily hinges on expansion in tier-III cities and small towns, the MSMEs connect would help it cover maximum ground. “Our knowledge and understanding of the Indian ecosystem allow us to construct frameworks such as ‘Growth Capital’ through which sellers can scale their businesses, prosper, create more employment opportunities, and continue to transform the country’s economy,” Kalyan Krishnamurthy, group chief executive officer, Flipkart, said.

According to sources, in a non-festive month, over 20 million units are sold on Flipkart and almost 70 per cent of transactions on the platform come from small sellers. For expanding to tier-III cities, the company is set for hyper growth, which will see it bringing more number of smaller companies, retailers and kirana stores into the fold.

According to sources, in the past 12 months, over 2,500 sellers have conducted business of more than Rs 1 crore. Group company Myntra has connected over 20,000 kirana stores in 24 states for its last-mile delivery programme, helping build a new income source for small shopkeepers.

“Our aim is to ensure that India’s internet economy becomes a hub for innovation and as a home-grown company. We want to solve unique Indian problems through technology. We are committed to making it happen through our initiatives focused on MSMEs, agriculture, Make in India, skilling, and building partnership with kiranas,” Rajneesh Kumar, chief corporate affairs officer, Flipkart Group, said.