Before the speculated initial public offering (IPO), India-based online retailer Flipkart has re-acquired its logistics service firm from WS Retail, which is the biggest seller on Flipkart's platform.
The acquisition has been done through its new firm, called Instakart Services Pvt. Ltd, reported Live Mint.
This deal leaves WS Retail with only one trading business, which is also being gradually closed as Flipkart shifts from inventory-led model to marketplace format.
Flipkart is repurchasing the logistics arm as it is preparing for an IPO over the next few years and intended to simplify its complex structure.
Established in 2009, WS Retail was owned by Flipkart founders Sachin Bansal and Binny Bansal, who later sold their stakes in the firm to a group of Indian investors after which they resigned from its board in 2012 as India does not allow foreign investment in B2C modeled e-commerce firms.
Registered in June, Instakart Services has Ankit Nagori, chief business officer of Flipkart and Rajnish Singh Baweja as finance controller of Flipkart, as the company's shareholders and directors.