Flipkart, owned by global retail giant Walmart, has announced that it will shut down ANS Commerce, a SaaS-based e-commerce enabler it acquired in 2022. The decision to close down the platform is set to take effect by March 31, 2025, marking the end of ANS Commerce’s operations.
The company has stated that it will ensure a smooth transition for employees and customers affected by this move. The closure is seen as part of Flipkart’s larger cost-cutting efforts, potentially linked to its plans for an IPO within the next 12 to 18 months.
Impact on Employees as ANS Commerce Shuts Down
With Flipkart deciding to wind down ANS Commerce, the company has assured that it will provide support for affected employees. Flipkart has announced that impacted workers will receive severance packages, outplacement services, and internal job opportunities within the company.
Media reports suggest that over 200 employees will be laid off, although Flipkart has not confirmed the exact number. At the end of the 2022 financial year, ANS Commerce had around 600 employees. Some affected employees have taken to social media platforms like LinkedIn to share their experiences, highlighting the sudden nature of the decision.
What is ANS Commerce
Founded in 2017, ANS Commerce positioned itself as a full-stack e-commerce solutions provider. It helped brands set up digital storefronts, integrate with online marketplaces, and manage order fulfillment efficiently.
Before its acquisition by Flipkart, the company had built partnerships with major brands, including Razorpay, Arvind Fashions, and Unicommerce. In 2021, it secured $2.2 million in a pre-Series A funding round from prominent investors such as Gokul Rajaram, Venture Catalysts, Kunal Shah, and Kunal Bahl.
At its peak, ANS Commerce fulfilled over 600,000 orders, showcasing its strong role in the direct-to-consumer (D2C) sector. However, despite its strong industry presence, Flipkart has now decided to discontinue the platform.
Why Flipkart is Shutting Down ANS Commerce
While Flipkart has not officially revealed the exact reasons for shutting down ANS Commerce, industry experts suggest that the decision is part of a broader cost-cutting strategy. With Flipkart reportedly preparing for an initial public offering (IPO) in the next 12 to 18 months, the company is looking to streamline its operations and optimize expenses.
As the e-commerce sector in India continues to evolve, Flipkart appears to be focusing on core business areas and profitability. The shutting down of ANS Commerce signals a strategic shift, possibly to allocate resources more efficiently before going public.
For businesses relying on ANS Commerce’s e-commerce solutions, Flipkart has assured that it will manage the transition smoothly. However, it remains unclear whether Flipkart will offer alternative services to affected clients or phase them out gradually.
Meanwhile, employees impacted by the closure are expected to face challenges in finding new roles. While severance packages and outplacement services will provide temporary relief, many professionals will need to explore new opportunities in India’s fast-changing startup and technology ecosystem.
Flipkart Future Strategy and Industry Impact
Flipkart’s decision to shut down ANS Commerce highlights the rapid shifts in India’s e-commerce industry. As companies prepare for IPOs and optimize costs, acquisitions and closures are becoming more common.
With competition from Amazon India, Reliance JioMart, and other major players, Flipkart’s restructuring efforts indicate a stronger focus on profitability and long-term business strategy. As the company moves towards a potential IPO, it is expected to prioritize high-growth and high-revenue business segments, leaving behind operations that do not align with its vision.
While the closure of ANS Commerce marks the end of an era, it also reflects the ongoing transformation in India’s startup ecosystem, where companies must constantly adapt to market demands and investor expectations.
