Post Date : July 23, 2020
Homegrown E-commerce giant Flipkart Group has acquired 100 percent stake in Walmart India for an undisclosed amount and will launch a new digital marketplace called Flipkart Wholesale next month.
This move will significantly bolster Flipkart’s attempts to drive growth for kiranas and MSMEs. It will also add the desired impetus in having an edge in the already-competitive grocery business.
The announcement comes after a week of Flipkart saying that it had raised USD 1.2 billion in funding from a Walmart-led investor group.
“With the launch of Flipkart Wholesale, we will now extend our capabilities across technology, logistics and finance to small businesses across the country.”~Kalyan Krishnamurthy, Chief Executive Officer, Flipkart Group
Flipkart Wholesale will be launched in August and the company will pilot services for the grocery and fashion segments.
Adarsh Menon, a veteran at Flipkart will reportedly lead the initiative.
As per sources, Sameer Aggarwal, Chief Executive Officer at Walmart India, is expected to remain with the company to regulate a smooth transition, after which he will move to another role within Walmart.
“The acquisition of Walmart India adds a strong talent pool with deep expertise in the wholesale business that will strengthen our position to address the needs of kiranas and MSMEs uniquely,” Krishnamurthy said.
Kiranas and MSMEs are vital to India’s retail ecosystem. Flipkart Wholesale will emphasise on meeting their needs by providing small businesses a wide selection at a significant value.
In addition, kiranas and MSMEs will be given the access to credit options and opportunities for new income generation through various Flipkart initiatives.
“For over a decade, we’ve been committed to India’s prosperity by serving kiranas and MSMEs, supporting smallholder farmers and building global sourcing and technology hubs throughout the country. Today marks the next big step as Walmart India’s pioneering cash-and-carry legacy meets Flipkart’s culture of innovation in the launch of Flipkart Wholesale.”~ Judith McKenna, President and Chief Executive Officer, Walmart International
Walmart India operates the Best Price cash-and-carry business and as of now, runs 28 Best Price wholesale stores in the country.
In 2018, Walmart Inc had invested a whopping USD 16 billion for acquiring 77 per cent stake in the group. Best Price has more than 1.5 million members, including kiranas and other MSMEs.