Finally! Flipkart solves its regulatory fix

Flipkart, often known as the posterboy of Indian e-commerce industry is acting like one and taking the lead to circumvent and solve the regulatory headwind pushing back the booming industry - FDI in multibrand retail.

A Times of India report today suggested that Flipkart has sold its front-end operations company WS Retail which owns the site and its operations to a group of Indian investors led by OnMobile COO Rajiv Kuchhal.

The move will help the company overcome the sticky FDI regulation that e-commerce companies were violating. An earlier_Business World_ reportexplains how these companies set up back-end warehouses and route foreign investment from international private equity, venture capital firms through these back-end arms since FDI in multibrand retail is still under debate.

More from Business

Hyundai India’s Rs 27,870 crore IPO oversubscribed by 2.28X, largely driven by institutional investors How Indian fintech startups are driving Malaysia’s UPI-like digital payments revolution

Selling front-end operations would mean transferring ownership from a foreign entity to an Indian one.

It will be interesting to sit back and watch if the rest will follow