Flipkart Buys Full-stack E-commerce Enabler ANS For Undisclosed Sum

E-commerce firm Flipkart Group said that it has acquired ANS Commerce, a full-stack e-commerce enabler that helps brands sell online. Through this acquisition, Flipkart said it continues its efforts to strengthen the Indian e-commerce ecosystem by investing in the capabilities of technology enablers that will address the needs of the rapidly growing and evolving digital retail market in India. The companies didn’t reveal the value of the transaction. The deal is expected to close in the second half of 2022, subject to customary closing conditions.

“At Flipkart, we are committed to developing and nurturing the internet consumer ecosystem, including developing and encouraging technological innovation that helps drive the Indian digital economy. Our efforts focus on ensuring that businesses, including MSMEs and smaller brands, can leverage the opportunities that e-commerce offers, to provide greater value and deeper experiences for Indian customers who are rapidly adopting digital commerce,” said Ravi Iyer, senior vice president and head - corporate development at Flipkart. “Our association with ANS Commerce started last year when they were part of Flipkart’s tech startup accelerator program, Flipkart Leap, and we are pleased to welcome the team to the Flipkart Group.”

ANS Commerce was started in 2017 and since then has built a full-stack offering for brands across the value chain. These include brandstore tech, performance marketing tech and services, marketplace integrations and warehousing and facilities maintenance capabilities. It works with more than 100 clients across enterprise, mid-market and D2C brands in different categories, supporting their transition to digital commerce.

The company’s product offerings help brands and businesses create digital brand stores or storefronts on their Kartify platform, improve return on Ad spends and manage end-to-end processes covering logistics and warehousing. A key focus for the company is the D2C segment which is rapidly growing in the Indian market as brands aim to connect with their consumers who seek direct engagement with them.

Post the acquisition ANS Commerce will continue to operate as an independent business under its existing leadership team.

“ANS Commerce was created to enable businesses to leverage the massive opportunity of e-commerce in India. Over the past few years, we’ve seen a dramatic change in consumer behaviour, and as a result, brands have also pivoted in their approach on how to engage with consumers,” said Vibhor, Amit, Nakul and Sushant, Co-founders, ANS Commerce in a joint statement. “We are pleased to now be associated with the Flipkart Group, as we continue our efforts to help brands leverage the power of technology to reach customers and deliver further value.”

Anand Lakshminarayanan, senior vice president, shopping experiences and commerce cloud, Flipkart, said as Indian e-commerce grows, Flipkart sees new-age brands building direct relationships with their customers. “We're excited to bring new SaaS services via ANS Commerce, to help Indian brands on their D2C journey and look forward to launching new industry-leading SaaS services to businesses adopting digitization,” said Lakshminarayanan.

Last year, ANS Commerce was aiming to reach Rs 500 crore gross merchandise value. With the demand for direct to consumer (D2C) brands picking up pace amidst the Covid-19 pandemic and the subsequent lockdowns, ANS Commerce capitalised on the growth possibilities in the area. Among its notable clients were brands such as Jack & Jones, Vero Moda, Portico, Piramal, CEAT, Bath & Body Works, Bikanervala, and ITC.

Flipkart has been an active investor in the ecosystem and has a portfolio of investments in many companies, which include startups such as Ninjacart, Shadowfax and Blackbuck, as well as established corporate entities such as ABFRL and Arvind. Flipkart has also undertaken several marquee M&A transactions such as Myntra, Walmart India, PhonePe, and Cleartrip, as well as cutting-edge technology companies such as Upstream, Liv.ai and Scapic. This strategy is helping it to tap new areas of business, get access to innovation and compete with players such as Amazon, Reliance’s JioMart and Tata-backed BigBasket.

This January, Flipkart acquired Yaantra, an electronics recommerce company, to strengthen its recommerce business and enhance after-sale offerings for its customers in the smartphones segment. Yaantra, incorporated in 2013 by Jayant Jha, Ankit Saraf and Anmol Gupta, is a leading brand that repairs and sells refurbished consumer tech products such as smartphones and laptops. With this acquisition, Flipkart will provide a comprehensive service ecosystem to its customers that takes care of the entire lifecycle of smartphones. The companies did not reveal the value of the transaction.