Flipkart seeks to accelerate the adoption of metaverse
In India, many of the leading tech firms such as TCS and Infosys have started to use Web3 technologies over the last few years. The sector is still in its nascent stages of development, and many innovative projects have been undertaken across the country. However, in 2022, Flipkart, one of the leading e-commerce marketplaces in India, made major inroads into the world of metaverse and Web3 technologies.
· In December 2022, Flipkart announced that the firm had forged a strategic alliance with Polygon, an Ethereum Layer-2 scaling startup. Under the collaboration, the two firms are seeking to accelerate the adoption of Web3 technologies in India over the next few years.
As part of the partnership, the two firms are expected to set up a Blockchain-eCommerce Centre for Excellence. The facility will be dedicated towards the research and development of metaverse commerce use cases and other Web3 technologies in India. With the Centre for Excellence, Flipkart is aiming to tap into the expertise of Polygon and technical know-how to further push its way into the emerging world of Web3 technologies and to onboard more users.
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Flipkart has been actively experimenting with the world of Web3 technologies for the major part of 2022. Earlier in the year, the firm launched FireDrops, an NFT platform for brands. During the 2022 festive season, Flipkart announced the launch of its metaverse shopping platform, Flipverse. The virtual shopping experience is available for consumers to access on FireDrops, which can be accessed from the e-commerce marketplace.
Going forward, Flipkart is planning to offer a more gamified experience to its shoppers, along with other immersive and interactive shopping capabilities. Furthermore, the firm has also extended its loyalty program, SuperCoins, for shoppers in the metaverse. For every purchase completed in Flipverse, shoppers receive SuperCoins, which they can redeem for discounts on future purchases.
While Flipkart aims to further strengthen its position in the metaverse and Web3 technologies through these strategic collaborations, Polygon is also seeking to bring more Indians under the umbrella of Web3 technologies. The partnership with Flipkart is expected to drive experiential retail in the country, which will subsequently boost the adoption of Web3 space across the country.
Over the last few years, India has witnessed the emergence of many Web3 startups including Samudai, Glip, and Autify. This trend is expected to further continue over the next three to four years, as both startups and well-established tech firms continue to make inroads into the Web3 space. The Indian Web 3 ecosystem is also projected to receive a major push from Meta's startup accelerator.
· In September 2022, Meta Platforms (Meta), formerly known as Facebook, announced that the firm had entered into a strategic collaboration with the Indian IT Ministry. Under the partnership, Meta has launched a startup accelerator in the country, which will further broaden the country’s innovation in emerging technologies such as the metaverse and Web3.
The startup accelerator program is supported by the US$50 million XR Programs and Research Fund of Meta. Each of the startups participating in the program will receive a grant cover of US$25,000. The program will initially select 80 startups to attend the boot camp, which will also receive support from Meta in finding customers and raising funds from global venture capital and private equity firms.
Meta Platforms have been aggressively spending on research and development to build the future of the internet. The firm had announced that its investment in the metaverse will be nearly US$100 billion over the course of the next five years. The push in the Indian metaverse market and other South Asian countries is part of the firm's strategy to drive the growth of the metaverse ecosystem in the region.
India is expected to play a pivotal role in the development of future technologies, and the investment from Meta and Flipkart in the sector is expected to become a large part of this development over the next few years.
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Over the next three to four years, more and more e-commerce marketplaces are expected to foray into the metaverse and other Web3 technologies. With online shopping expected to grow at a significant rate over the next three to four years, players such as Flipkart, Amazon, and Meesho, are expected to build immersive and interactive shopping solutions for their customers. These investments, from leading e-commerce giants, will keep driving innovation and growth of the metaverse industry in the country from the short to medium-term perspective.
India certainly has the potential to become a global leader in the metaverse sector over the next few years, while also supporting the growth of the global market. However, the role of the Indian government is also expected to play a pivotal role in this journey. For driving the widespread adoption of the metaverse, including virtual reality shopping in India, investment in 5G technology is pivotal.
The Indian government has launched the 5th generation telecom services, which will provide consumers with higher internet speed and seamless coverage. Consequently, the nationwide rollout of 5G services is expected to drive metaverse consumption multi-fold, while also driving new use cases for the emerging technology.