"We are evaluating the department’s response and intend to re-apply as we look to continue making significant impact on small businesses and communities in India," said the spokesperson of the Flipkart Group.
Walmart-owned Flipkart will soon re-apply for food retail licence after facing the rejection from the Department for Promotion of Industry and Internal Trade (DPIIT).
"We are evaluating the department’s response and intend to re-apply as we look to continue making significant impact on small businesses and communities in India," said the spokesperson of the Flipkart Group.
"At Flipkart, we believe that technology and innovation driven marketplace can add significant value to our country’s farmers and food processing sector by bringing value chain efficiency and transparency. This will further aid boosting farmers’ income and transform Indian agriculture," he added.
The company was reported to have sought regulatory approval for its food retail business in March after registering a new company called Flipkart Farmermart Pvt in India.
The idea was to deepen its penetration in the food retail space, take on Amazon, and run a farm-to-fork operation.
Interestingly, Amazon secured its food retail licence way back in July 2017, and has since been investing to build its grocery business.
Flipkart, though late to the party, was expecting to get an approval in two-three months of having applied for it.
Flipkart has the benefit of Walmart’s expertise in building its food supply chain. The American retailer already runs a cash-and-carry (or wholesale) business in India and has tie-ups with farmers for grocery and food produce.
Moneycontrol earlier reported that the company had registered an entity called Flipkart FarmerMart in October.
