Ecommerce portal, FlipKart.com has divested its front-end company WS Retail Services which has been acquired by a group of Indian investors led by former OnMobile COO Rajiv Kuchhal, reported Times of India. WS Retail manages Flipkart operations in India. India Digital Review has sent a communiqué to FlipKart for confirming the development. We will update the space as soon as we get the official responses.

FlipKart has recently formed a parent company in Singapore which has acquired the back-end technology company and divests the front-end operations. Now, FlipKart has no shareholding in the Indian operations company WS Retail which has more than 5,000 staff and a licensing deal to use FlipKart’s brand and technology in the domestic market.

The move comes in the wake of Enforcement Directorate (ED) probing FlipKart’s alleged violation of FDI norms which the company has denied. India allowed 51% foreign investment in multi-brand retailers last year, but excluded e-commerce engines from the law. 

The TOI report further states that Flipkart is said to have intimated the Reserve Bank of India ( RBI) on the latest corporate restructuring and shareholding changes.

Meanwhile, Kuchhal said, "The Registrar of Companies has all the details. There is nothing for me to confirm or deny.”

Recently, the company has launched a marketplace wherein it is inviting external sellers to list their products. A sign-in page has already gone which is presently linked to FlipKart’s parent website. It is to be noted that recently, FlipKart's Chief Financial Officer Karandeep Singh also resigned from the post citing personal reasons. Flipkart has raised about $150 million from Naspers and two existing investors Accel and Tiger last year.