Flipkart needs no introduction in India as it is the go-to platform for online shopping. The global e-commerce leader, Amazon is also behind Flipkart when it comes to the Indian market. The world’s largest offline retailer and the American giant Walmart purchased a controlling stake of 77% in the Indian company for a massive $16 billion.
It should be noted that the company has very high goodwill and Walmart paid the highest value for their goodwill only while purchasing their stake. The e-commerce market in India was revolutionized by this Bengaluru based startup. It made the Indian population feel safe and secure while ordering things online and pay by cash on delivery. The ordering process was very easy and the after-sales service was also good such as the return and exchange policy. Gradually, Flipkart made the consumers feel safe to pay online as well.
The company needs to put in more efforts to modernize and inculcate more automation in their business. As we know, the time has come when the technology sector has started to be dominated by Artificial Intelligence and Machine Learning. This is the reason the company has started investing in more research and development in this sector.
Flipkart has moved into Israel to set up its research and development centre. They already have a centre in California, the US in Silicon Valley to attract the techies from there. Israel has sprung up as a hot destination for tech-based companies from all over the world as it offers a huge pool of young talent in the tech field. The country excels in modern technologies such as AI and ML. This helps the coming going there to tap into the country’s young minds and grow. Most of the big companies such as Google, Apple and Salesforce have their offices in Israel for the same reason.
Flipkart’s parent company, Walmart acquired a local Israeli company Aspectiva. This company is based in Tel Aviv and works in the field of AI to analyse and process data from consumers to make personalized recommendations. Flipkart’s move into the country is aimed at something more than this. They obviously need more data analysis prowess due to the huge consumer base that they have. However, they are more concerned with their cybersecurity condition. India is one of the major tech powers in the world and it needs to be safe and secure from the cyber attacks on a regular basis. Companies, especially the ones that are working in the technology field and are mostly internet based needs to be more careful. Flipkart has opened the R&D centre in Israel to focus on cybersecurity, cloud computing and data protection.
The Indian government has compelled numerous foreign brands operating in India to localize their data of the Indian consumers. This is crucial for the safety and privacy of Indian users. This is stricter for online payment platforms. Interestingly, Flipkart has its own online payments arm called PhonePe and for this, they need the technological advancement to operate. The R&D centre in Israel will be of great help to the company. The centre will be headed by the company’s Vice President, Jeyandran Venugopal.