Flipkart acquires Walmart India’s wholesale business
E-commerce platform Flipkart has acquired 100 per cent stake in Walmart India Private Limited, which operates the Best Price cash-and-carry business. The company would leverage the strong wholesale capabilities of the company and enable growth for kiranas and micro, small and medium enterprises.
The Bengaluru-based firm announced the launch of Flipkart Wholesale, a new digital marketplace. It will help transform the kirana retail ecosystem in India by leveraging cutting-edge and locally developed technology.
Kalyan Krishnamurthy, Chief Executive Officer, Flipkart Group said “As the e-commerce pioneer in India, the Flipkart Group has transformed the shopping experience for millions of Indian consumers. With the launch of Flipkart Wholesale, we will now extend our capabilities across technology, logistics and finance to small businesses across the country”.
“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. With this development, the firm will further build upon the synergies across its businesses to drive greater value and choice for end-consumers and businesses alike” added Kalyan Krishnamurthy.
Walmart, the world’s largest retailer, invested $16 billion for a majority stake in Flipkart in 2018. This month it led a $1.2-billion investment in the Indian E-commerce company, valuing the e-commerce firm at $24.9 billion.
Flipkart Wholesale will begin its operations in August 2020 and will pilot services for the grocery and fashion categories. It will be headed by Adarsh Menon, a veteran at Flipkart. Sameer Aggarwal, CEO at Walmart India, will remain with the company to ensure a smooth transition, after which time he will move to another role within Walmart.
The acquisition will help the firm take on competitors such as Amazon headed by Jeff Bezos and The Mukesh Ambani-led company’s e-commerce venture JioMart, which are also bringing Kiranas and local shops on their platform and merging online and offline retail.