Flipkart to invest over $500 million to build fulfilment centres across India

Leading Indian ecommerce company, Flipkart, is reportedly planning to invest more than $500 million in building fulfilment centres across the country.


Leading Indian ecommerce company, Flipkart, is reportedly planning to invest more than $500 million in building fulfilment centres across the country.

According to a report in Reuters, Flipkart's Chief Operating Officer, Binny Bansal is quoted as saying, "Flipkart is investing in fortifying logistical abilities by leveraging capabilities such as automation and many innovative devices."

A report in the Economic Times states that Flipkart plans to invest between $3-4 billion, which is approximately Rs 19,500 to 26000 crore "to create a strong logistics network with a focus on technology." While the $500 million will be invested across the country, half of the planned 80-100 fulfilment centres would be located in Tier-2 and Tier-3 cities, the report adds.

With these investments, Flipkart aims to reduce the time taken to fulfil an order to a maximum of two days, Bansal told Economic Times. As the company scales to be a multi-billion dollar business, it is reported to be planning an IPO, according to reports.

The proposed IPO is expected over the next couple of years. Currently, inventory from sellers is stored and packaged for delivery in large warehouses due to a double taxation policy. However, with the network of fulfilment centres, the packaging and delivery process could speed up, resulting in a better customer satisfaction level.