Flipkart is looking to expand its product portfolio by exploring a push into the online groceries sector, Reuters reported on Sunday. Company Chief Executive Officer Binny Bansal said the e-commerce platform would start experimenting with grocery sales in 2017 and will scale-up its operations over a period of three years.
“There’s definitely room to build a profitable grocery business, but it’s hard,” Bansal said. “That doesn’t mean it’s not possible, but it’s hard.” Fashion will remain the company’s best selling category for the next few years, but there is potential for groceries to grow as big as clothing and electronics, Bansal said.
Flipkart will also relaunch its furniture store with more variety in the next three to four months, its CEO said, adding that the company will aim to provide furniture assembly services as well. While the company has cash reserves that will last it up to three years, it would consider going public in the next two to four years, Bansal said. “We are constantly talking to investors and partners who are interested in investing.”
Bansal’s remarks come a month-and-a-half after the company announced that it had outdone rival Amazon in their annual pre-Diwali sales this year. Flipkart said it sold 15.5 million units in its five-day mega sale, Big Billion Days. In September, it was reported that the company was in the final stages of talks with Walmart for a $1-billion (approximately Rs 6,821.5 crore) investment. According to Bank of America Merrill Lynch, the value of goods sold online in India could rise to $188 billion (approximately Rs 12.82 lakh crore) by 2025.