Flipkart Wholesale starts grocery ops to tap kiranas, small retailers

The digital B2B marketplace is starting its grocery operations in Gurugram and has plans to scale up this business across the country

Flipkart Wholesale, the digital business-to-business (B2B) marketplace launched by the Walmart-owned e-commerce giant a few months ago is now betting big to tap the grocery business in the country.

Flipkart Wholesale, which went live with the fashion category in September last year, will now also offer grocery on its app. The aim is to provide kiranas and small retailers one-stop access to a wide selection of products using technology. The move would enable Flipkart to compete with Udaan — the B2B e-commerce firm, as well as Amazon and Reliance’s JioMart which, are also making huge inroads into this space.

Flipkart Wholesale is starting its grocery operations in Gurugram and has plans to scale up this business across the country. It will operate a 100,000 sq ft fulfilment centre in Bilaspur, Gurugram to better serve kiranas with delivery directly to their shops. 

“We believe this will be a game-changer for kiranas and small retailers who can now leverage technology to order products online with convenience and grow their businesses,” said Adarsh Menon, senior vice president and head - Flipkart Wholesale.

With this launch, the company would boost MSME (micro, small and medium enterprises) suppliers and give regional grocery brands a fillip through a pan-India supply chain integration. 

“By leveraging the strong merchandising experience and brand relationships of our Best Price cash-and-carry business, we are confident that Flipkart Wholesale will prove to be a catalyst in the growth and prosperity of kiranas and MSMEs who are the backbone of India’s retail ecosystem,” said Menon.

With this development, Flipkart Wholesale now supports over 6,500 employment opportunities pan-India, since its launch in September. The firm said it will continue to boost job creation this year as well. As a start, the grocery category will be available to retailers in Gurugram who can order products from the Flipkart Wholesale app. 

“The fulfilment centre in Gurugram will create new jobs and opportunities for the people of Haryana and the launch of grocery on the Flipkart Wholesale app will help kiranas, which are the lifeline of our state and our nation, reap the digital dividend,” said Devender Singh, additional chief secretary, agriculture, public health and irrigation, Government of Haryana. “We are happy that the group has yet again chosen our state to invest in, and we look forward to a mutually beneficial relationship in the times to come.”

The expansion to other parts of the National Capital Region and subsequently other cities will take place over the next few months. Using the app, retailers will be able to order staples, personal care and beverages. Other categories include cleaning and laundry, snacks and biscuits and packaged food products. These are available across over 350 brands which include products from leading companies such as HUL, P&G, ITC and Nestle.

As per research firm RedSeer Consulting’s estimates, more than 50 per cent of the $570 billion grocery retail space in India is addressable by e-grocery platforms. Of this, value-first households account for a significant 61 per cent portion, with metro and tier 1 markets covering more than 40 per cent of this value-first opportunity.

Riding on the huge and profitable value-first opportunity, the overall e-grocery market is projected to touch  $24 billion GMV (gross merchandise value) by 2025, of which 55 per cent will be contributed by the value-first households, according to RedSeer.

Flipkart Wholesale’s Best Price cash-and-carry business has been serving kiranas, offices and institutions (O&Is) and hotels, restaurants and cafeterias (HoReCa) with merchandise.

Over 95 per cent of merchandise sold across 29 Best Price cash-and-carry stores is locally sourced, enabling the development of the local supplier ecosystem. Flipkart Wholesale handholds and develops small-sized businesses into compliant and efficient manufacturers. The company said this is strengthening the supply chain, boosting the local economy and providing suppliers with the opportunity to become part of the national supply chain.

Flipkart Wholesale customers will have access to an easy credit facility to manage cash flow. It would also provide a wide range of Flipkart assured products, convenient order returns and speedy product delivery directly to their shops with an order tracking facility. They will also be able to leverage micro-market level B2B and B2C insights from the Flipkart ecosystem to better understand customer demands specific to their area so that they can buy and sell the right products.