Flipkart, FDI, WS Retail & Flipkart's Parent Company In Singapore

A ton of things are happening in the Indian e-Commerce scene. Flipkart, the online megastore that operates out of Bangalore, India had to change the way they operate because of the FDI rules setup by Indian Government. The rules do not allow FDI in e-Commerce websites in India.

As a result, Flipkart now has sold its 'front-end' business to a group of investors led by Rajiv Kuchhal (former OnMobile chief operations officer) as 'WS Retail'. Flipkart also registered a parent company in Singapore as 'Flipkart PTE LTD') which now has all the investments made by the venture capitalists. The back-end of Flipkart is maintained by the Indian company which has formed an agreement with the Flipkart PTE LTD.

The company has also informed the RBI about the changes and Mr. Kuchhal has said that all the details are now available with the Registrar of Companies (RoC).

If I'm not mistaken, nearly 5000 of Flipkart's ground staff which handled delivery of goods is now controlled by 'WS Retail' and Flipkart has no say in it. The only concern I have is that Flipkart's operations and faster delivery should not be affected by this move.

It'd be interesting to see how these moves affect the existing Indian eCommerce websites.

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