Flipkart says it's fully compliant with FDI laws, contributing to inclusive growth

Last Updated: Thu, Oct 03, 2019 13:42 hrs
Flipkart (ANI photo)

Bengaluru (Karnataka): Leading e-commerce marketplace Flipkart said on Thursday it is fully compliant with foreign direct investment (FDI) laws and works closely with lakhs of small businesses across the country to bring prosperity at the grassroots level.

"We are fully compliant with FDI laws of the country," it said in a statement.

"We are a marketplace player and work closely with lakhs of our sellers, artisans, and small and medium enterprises (SMEs) across the country. We help them connect with more than 16 crore customers. We are proud of our work to make these sellers and artisans successful and help in economic growth and job creation in India."

The statement came after the Jodhpur bench of Rajasthan High Court on Tuesday issued notices to Flipkart and Amazon on a petition filed by the Confederation of All India Traders (CAIT), alleging FDI policy violations.

The petition has sought the court's direction to the Centre to take immediate measures ensuring that e-commerce entities do not circumvent provisions of the FDI policy and both e-commerce marketplaces are stopped from offering deep discounts during the coming Diwali sale.

Last month, Flipkart has onboard nearly 27,000 kirana stores across 700 cities to its pan-India supply chain, helping it reach out to lakhs of new consumers during the upcoming festive season.

"Kiranas are the oldest and most widely spread retail format in India which exhibit the modernness of supply chain and deliver a successful customer experience management model," said CEO of Flipkart Group Kalyan Krishnamurthy.

"After digital payments, the next big revolution in kirana is going to be ushered in conjunction with e-commerce," he said.

The marketplace has a registered customer base of over 16 crore offering over 8 crore products across 80-plus categories. Recently, it announced the introduction of Hindi interface on its platform to make it more engaging for new internet users in the country are native language speakers.