Flipkart to Pay 300 Crore Rent
E-commerce giant Flipkart on Sunday agreed to take 3 million sq.ft. of prime office space, in Bangalore from a realty firm called Embassy group, at an annual rent of 3oo crore. It is the largest real estate deal signed in India.
The lease is a part of Flipkart’s expansion plan as it is planning to hire 12,000 more employees to beef upits support in technology operations.
India’s biggest online brand Flipkart
Flipkart’s Bangalore firm has chalked out an ambitious plan to further expand its share of the e-commerce market in India. According to the Company the expansion plan would give stiff competition to its rivals like Snapdeal and Amazon.
The final agreement of the deal would be signed within 90 days. Indian Govt. also aided Flipkart in securing the space from Embassy.
The office premises will be delivered in two stages with an area of 1.5 million sq.ft. to be delivered in the next 24 months and rest to be delivered in next 3 to 4 years.
This is the first campus at Tech Village, Bangalore and is a part of Embassy group’s commercial project ‘Embassy Office Park’, which is a joint venture with a private equity firm Blackstone.
The office is located in the heart of Bangalore’s IT corridor that will surely bebenefitial to Flipkart.
This year Flipkart recorded almost 40 times the sales growth of last year. It seems Flipkart is ahead of the rest of its competitors in terms of its sales and marketing in India, despite facing backlash on the recent Billion Dollar Sale on October 6.
Leading brand in India in terms of sales and offers.
Experts believe that Flipkart as an Indian brand generates more expectations when it comes to deals and discounts. Customer loyalty in the online market is not seen because the buyers always favor the highest discount offering vendor. But Flipkart is able to maintain a loyal market share as it offers better and more consistent discounts than any of its rivals.
Already, the company was doing so well in terms of profits and sales, and now thisstep would really add on to its future growth. It would also create job opportunities which is good for the country’s economy.
