Flipkart might have to downsize due to FDI regulations

Last year, when Walmart tried to use Flipkart to cross-sell their private brands to maximize the advantage, the FDI regulations played a spoilsport there. The e-commerce rules are tough and it is making things difficult for Flipkart to continue with its business. Flipkart has reportedly started buying directly from the manufacturers and can downsize its services in future even more to comply with the FDI regulations.