Indian e-commerce business Flipkart Online Services Pvt. Ltd. intends to invest $264 million in its online grocery store Supermart over the next three years, The Economic Times (India) reported Aug. 9, citing people familiar with company's plans.
Flipkart launched Supermart in Bengaluru, India, several months ago and is aiming to expand its grocery services in India to Hyderabad, Chennai and Delhi by the end of the year, the report said.
The company's online store will be competing with Alibaba Group Holding Ltd.'s BigBasket, SoftBank Group Corp.'s Grofers and Amazon.com Inc.'s Indian arm, it added.
The online retailer is reportedly seeking to capture a large share of the online grocery market by introducing daily discounts, an improved shopping experience, seamless delivery and private-label offerings.
The company has launched a private label, Flipkart Supermart Select, in the staples category and aims to expand this to other food and nonfood offerings, according to The Economic Times.
The news comes just a day after India's competition regulator approved Walmart Inc.'s acquisition of a majority stake in Flipkart in a deal worth about $16 billion.