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_ report explains 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.

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