In a major reverse acquisition, e-commerce major Flipkart Group today picked up a cent per cent stake in Walmart India Pvt Ltd.
The group has launched Flipkart Wholesale, a new digital marketplace, which will launch its operations in August.
This platform aims to transform kirana retail system in India by leveraging locally-developed technology and help growth for kiranas and MSMEs.
It also aims to put to good use Walmart India’s experience in merchandising and Best Price stores operations.
JioMart also operates on a similar model. It has partnered with millions of small merchants and Kirana shops to empower them to cater to the needs of the customers.
WhatsApp and Reliance Industries are working closely to ensure consumers accessibility to the nearest Kiranas through the apps.
Flipkart Group will pilot services for the grocery and fashion segment.
Best Price currently supports more than 1.5 million members, including kiranas, horecas and other MSMEs.
“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,” Flipkart Group CEO Kalyan Krishnamurthy said.
Flipkart Wholsale will be headed by Flipkart veteran Adarsh Menon and Sameer Aggarwal will function in the capacity of Walmart India CEO for smooth transition. Thereafter, he will assume a new charge with Walmart.
Flipkart Group will soon receive $1.2 billion fund in two tranches in emaining fiscal, which is led by majority owner Walmart for its e-commerce business.
In 2018, Walmart Inc. had invested $16 billion for a majority stake in Flipkart.
This new platform will help Flipkart to expand its footprint in the food and grocery segment and strengthen its supply chain.
Walmart India operates 28 Best Price stores and has two fulfilment centres.
“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,” said Judith McKenna, President and CEO, Walmart International.
Adarsh Menon, Senior Vice President and Head – Flipkart Wholesale, said, “Flipkart Wholesale will further deepen and build on Walmart India and the Flipkart Group’s commitment to kiranas and MSMEs over the last several years. Thousands of kiranas have already partnered with Flipkart to enhance their business and income streams. We will leverage the synergies between Flipkart and Walmart India as we stay focused on transforming the wholesale experience for kiranas and MSMEs.”
