E-commerce player Flipkart has introduced its own fashion brand called Flippd having a range of men's apparel and footwear. It is now looking at acquiring another online apparel company like Zovi or YepMe to strengthen and increase sales of high-margin products on its portal. Flipped’s portfolio will soon be expanded to cover other categories such as women's wear, sunglasses and watches by the end of this quarter. The company has also started retailing jewellery, another high-margin category.
Though the deal is yet to get through, if it gets finalized, then this will be the second acquisition in two years for Flipkart which bought electronics portal Letsbuy in 2012. Last year, Flipkart raised equity funding of Rs 2,200 crores, creating a strong fund pool that can now be used for expansion and possible acquisitions.
After reporting five-fold rise in its revenues to more than Rs 1,180 crores from Rs 204.8 crores in the previous year, Flipkart, founded as a small start-up in 2007, now plans to bank upon technology to sell everything from apparels to consumer durables, apart from building its own logistics firm. The company also has strong plans to go global but aims to record sales of 1 billion dollars (over Rs 6,000 crores) by 2015. And before that it is looking at further strengthening India operations and floating an IPO in a year’s time.