Ecommerce major Flipkart has clocked 1.6X year-on-year (YoY) growth in its grocery business in FY24, with more than half of deliveries being carried out using electric vehicles.
As per the company, Flipkart Grocery saw maximum sales of daily essentials like oil, ghee and atta, and FMCG products like tea, coffee, detergents and personal care.
Besides, the ecommerce giant’s premium grocery product categories such as liquid detergents saw a 1.6X jump YoY, while dry fruits and energy drinks surged 1.5X each.
As part of its Indian expansion strategy, Flipkart is increasing its customer base in tier II cities, including Aurangabad, Bokaro, Chhattarpur, Guwahati and Vizag among others.
Flipkart claims it is the only e-commerce company offering next-day grocery deliveries in more than 200 cities. This includes both metros and tier II cities such as Anantapur, Berhampore, Gorakhpur, Moradabad, Nagaon, Saharsa, and Vellore, among others.
With a wide range of products costing as low as INR 5 in its line up, Flipkart Grocery is witnessing a strong demand in these regions from customers who prefer affordability, the company said.
Additionally, Flipkart claims to have launched 16 grocery fulfillment centres across Ahmedabad, Bhubaneshwar, Chennai, Hubli, Kolkata, Ludhiana, Malda and Visakhapatnam, among other top cities, strengthening its grocery supply chain infrastructure to cater to the growing demand for daily essentials.
The Walmart-owned company has also made several technological innovations to cater to the increasing online grocery demand, which includes features like voice-enabled shopping, zero-interest credit, and open-box delivery among others.
The development comes at a time when Flipkart is looking to shift the domicile of its parent entity Walmart to India from Singapore, as part of broader plans to launch an initial public offering (IPO) at a valuation of roughly $60 Bn.
Speaking at the retail giant’s earnings call, Walmart International president and CEO Kath McLay said the company is exploring the “right time” to float Flipkart’s IPO.
It’s pertinent to note that Flipkart had considered launching an IPO in 2022 but those plans were later put on hold until 2024 largely due to global economic uncertainty.
Interestingly, in the ecommerce space, Flipkart is not the only player looking to go public. Other firms in the race include Udaan, Meesho and Zepto.
