Last month, we heard about a fresh round of funding in the pipeline for Flipkart. While we could be sure that expansion was on the cards for the ecommerce giant, how this expansion would be one can only wait and watch, or guess!
For now, we can keep the guessing on hold. Flipkart has acquired Adiquity, a mobile advertising firm. This will help Flipkart to branch out into broader areas and explore advertising also as a value-add for its associated sellers.
Flipkart’s confirmed the news with this statement, “Flipkart has acquired AdIQuity, a leading mobile ad network company. M&A is a key focus for us this year. And given our concentration on mobile, companies that have made a mark in this space will be on our radar. AdIQuity has a history of mobile innovations, extremely valuable experience in the ad space and a talented tech team – all of which are a great strategic fit for Flipkart.”
Why does Flipkart want a mobile advertising firm?
The home grown ecommerce player has been transparent about its intention to explore new initiatives and value add services to aid and help its seller base in improving their sales activities. On the same lines, this acquisition will help Flipkart to explore new revenue channels to achieve profitability.
If reports are to be believed, Adiquity will facilitate the following for Flipkart and its merchants:
- Flipkart’s external marketing – Other brands will be able to use Flipkart’s data on user behavior and accordingly target customers.
- Flipkart merchants will be able to access Adiquity’s features like Geo Sense which will help them to target customers based on their preferences and locations.
Also, mobile commerce is the order of the day and this seems like Flipkart is taking it seriously to ensure its not behind on the m-commerce bandwagon.
Is Flipkart eyeing more acquisitions?
Last year, the Myntra acquisition made headlines and there has been no looking back since. We hear Adiquity is only the first acquisition this year, meaning there could be more as the year progresses and Flipkart inches closer to IPO and profitability.
Will be interesting to see what else Flipkart is on the lookout for, don’t you think?