As Flipkart gears up for its public market debut, the ecommerce giant finds itself at a strategic crossroads—how much should it bet on its new quick commerce venture, Minutes, without compromising its core business profitability?
The company faces a tough choice: aggressively invest in the ultra-competitive 10-minute delivery space to chase revenue growth, or play it safe to preserve margins as it readies for listing. Rivals like Blinkit (backed by Zomato), Swiggy Instamart, and Zepto are already entrenched in the space, intensifying the pressure on Flipkart.
Industry analysts believe Flipkart’s edge may lie in groceries, supported by its dominance in fashion and electronics—two categories that remain less penetrated by quick commerce players. Additionally, the company may benefit from its past experience with its discontinued 90-minute delivery initiative, Quick.
However, Flipkart’s road to IPO isn’t just about business strategy. The ecommerce major is expected to face a significant tax hit in its so-called “Desh Wapsi”—a reverse flip to India. For context, payments firm Razorpay, valued at $7.2 Bn, could incur $150 Mn in taxes for a similar move. For Flipkart, with a valuation of $36 Bn, the financial burden could be considerably higher.
Despite the challenges, Flipkart appears committed to scaling Minutes. Reports suggest it is actively considering strategic investments and acqui-hires to strengthen its position in the quick commerce space. The platform is also targeting a dark store expansion to 800 locations by the end of 2025.
With fierce competition, rising costs, and investor expectations on the horizon, Flipkart’s balancing act between growth and profitability will likely shape its IPO story in the months ahead.
