India-based Flipkart has announced it is entering the food retail business, as the ecommerce company seeks to expand its reach in the country.
In compliance with local laws, Flipkart has registered an entity called Flipkart Farmermart Pvt Ltd, which will focus on food retail, said a company representative in a statement to TechCrunch.
According to them, the extended business is part of an effort to support local agriculture as well as the food processing industry in the country. The company is already working with hundreds of thousands of small farmers for the business.
The announcement comes as Flipkart’s rival Amazon starts expanding its food retail business in India – the company has already committed to invest about USD 500 million in the course of the next five years to build its own private label food products and engage with third-party sellers.
Source: The Paypers