Bengaluru-based e-commerce company, Flipkart has launched a pilot project in Hyderabad for delivery of fresh vegetables and fruits in partnership with vendors on its marketplace, according to The Economic Times report.
Sources told that the company has applied for a food retail consent for its newly registered entity Flipkart FarmerMart. This will also help the Walmart-owned company's food inventory in the country, as directed under the foreign direct investment (FDI) rules.
In addition, Flipkart is planning to start 6 brick-and-mortar grocery stores after receiving the license, a procedure that could take 6 months, the report said. So far, Flipkart has partnered with Waycool Foods and Products & other sellers on the platform, the report mentioned.
It added that Ninjacart that recently received a joint investment from Flipkart & Walmart, is likely to support a part of the supply in future.
The company also said that "Grocery is one of the key categories at Flipkart...the pilot project with fresh food in Hyderabad aims to get a better understanding of customer behavior and the supply chain that we are developing to address the demand for this category".
Flipkart FarmerMart at present has an authorized equity capital of Rs 1,845 crore. This new development comes in face of tough competition in the food & delivery segments in India.
It is important to mention that the food retail license will be given by the Department for Promotion of Industry and Internal Trade or DPIIT.
