 "Flipkart")
The coronavirus pandemic has not only accelerated a shift to e-commerce but also given rise to startups that are building solutions relevant for the new normal. Flipkart is wooing and incubating many such tech startups and even acquiring them. The strategy is helping the e-commerce giant get a ringside view of these innovations and even access them. These range from startups which understand the emotions of shoppers using artificial intelligence, companies which provide mobile robots that sort packages and improve personnel productivity, to firms that capture data using on-farm sensors to provide recommendations to farmers.
The Walmart-owned company recently selected the finalists of the first cohort of its startup accelerator programme, Flipkart Leap. This is its first startup accelerator programme which it launched last year to support new and upcoming firms.
“We look forward to working with the eight startups, mentoring them and supporting them through industry exposure and strategic partnerships," says Naren Ravula, vice president, product strategy and deployment at Flipkart. “We aim to nurture promising startups and help them create compelling solutions for customers and bring value to the industry.”
One such company is Entropik Tech, which is India’s first Emotion AI company. It has patented technologies that help brands measure the cognitive and emotional response of consumers towards product experiences, media campaigns and brand content. This helps in unlocking consumer behavioural insights for brands to deliver superlative experiences.
Another firm Unbox Robotics builds a plug-and-play system of AI-powered mobile robots. These sort packages in vertical space and improve personnel productivity fivefold in less than 50-70 per cent of the area required by existing methods. It has already onboarded some of the leading logistics and e-commerce players in Indian and overseas.
Among the finalists was also Wolkus Technology (Fasal). It is an Internet of Things (IoT) technology and AI-powered intelligence platform for horticulture crops. It captures real-time data on conditions from on-farm sensors. The firm then delivers farm-specific, crop-specific and crop-stage-specific actionable recommendations to farmers over mobile phones in vernacular languages through the ‘Fasal’ app.
Flipkart also had shortlisted Tagbox Solutions. The startup provides supply chain monitoring solutions using IoT, machine learning and AI to help organizations solve problems related to product quality and compliance, traceability, and operational efficiency. It provides an array of services to sectors such as food and beverage, pharma and hi-tech and industrial companies.
These shortlisted startups will undergo a 16-week mentorship program conducted by a team of Flipkart leaders and various industry experts. The mentorship programme has been crafted to provide knowledge of venture development and secure partnerships for the selected startups. In addition, the finalists will receive an equity-free grant of $ 25,000 each.
Such firms may also be considered for funding by Flipkart from the company’s $100 million fund that is being managed by an internal investment committee.
With coronavirus pandemic bringing about a change in consumer behaviour and an increase in online adoption, Flipkart is also enhancing consumer experiences through strategic stakes or acquisitions of tech startups.
Last November, Flipkart acquired Scapic, an Augmented Reality company (AR), to enhance its e-commerce shopping experience capabilities. Scapic is a cloud-based platform which enables creation and publishing of Augmented Reality (AR) and 3D content, currently serving clients across e-commerce and marketing. Flipkart which competes with Amazon and Reliance’s JioMart did not reveal financial details of the transaction.
Last year, Flipkart also strengthened its gaming strategy through the acquisition of intellectual property (IP) from Mech Mocha, a mobile gaming start-up that runs India’s first live-social gaming platform Hello Play. This is an important move as according to consulting firm RedSeer, there is a rise in new shopping models owing to changing customer demographics, including video-based and WhatsApp-based shopping. Flipkart and its parent Walmart also made a fresh round of investment in Ninjacart that connects farmers with kiranas and businesses using technology. In late 2019, Walmart and Flipkart made a strategic minority investment in Shadowfax, a cross-category and full-stack logistics startup.
Flipkart’s rival Amazon is also wooing the startup community. The Jeff Bezos-led firm on Tuesday launched Amazon Global Selling Propel (AGSP), an initiative designed to provide dedicated support to emerging Indian brands and startups to reach customers around the world. Amazon has partnered with Startup India to launch an accelerator programme to help early-stage startups in the consumer products space to launch in international markets. The aim is to create global brands from India through Amazon’s Global Selling programme.
As part of the Startup Accelerator, Amazon has constituted a mentorship board consisting of Amazon leaders from India and across the world. These also include venture capitalists and senior leaders from Startup India and Invest India who will engage with emerging brands. They would provide them tailored resources, one-on-one mentorship on the global demand patterns and insights on building successful exports business through e-commerce. The accelerator programme will provide startups with an opportunity to showcase their business proposition to partner venture capital firms – Sequoia Capital India and Fireside Ventures. They would also get a chance to receive a total equity-free grant of $50,000 from Amazon.
