Flipkart's logistics arm eKart raises $98M from group firm Klick2Shop

Flipkart has pumped in nearly $98 million (Rs 641 cr) into its logistics arm eKart through its Singapore-based group firm Klick2Shop Logistics Services International, according to regulatory filings with the Ministry of Corporate Affairs.

As reported by ET, the latest funding is aimed at strengthening the logistics network of the e-tailer ahead of the festive rush. Flipkart earlier pumped Rs 666 crore into its subsidiary Instakart Services 18 months ago.

Klick2shop is the controlling entity of Instakart and is most likely a subsidiary of Flipkart, the Singapore-based flagship parent of the online retailer.

Amidst stiff competition from rival Amazon, Flipkart recently raised a massive $2.5 billion from SoftBank beefing up its war chest. In April, it had raised $1.4 billion from Microsoft, Tencent and eBay Inc, in a transaction that also saw it acquire the Indian operations of eBay.

Amazon too infused Rs 400 crore into its logistics arm Amazon Transportation in August. It has also been opening fulfilment centres across the country to ramp up its logistics infrastructure, taking the number of fulfilment centres to 41 across 13 states.