Homegrown e-commerce company, Flipkart, has acquired 100% stake in Walmart India, which operates the Best Price cash-and-carry business and has launched Flipkart Wholesale, a new digital marketplace that will help transform the kirana retail ecosystem in India, the company said in a statement.
As a move to brand extension Flipkart acquires Walmart India, launches Flipkart Wholesale
Flipkart Wholesale will launch 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, chief executive officer at Walmart India, will remain with the company to ensure a smooth transition, after which time he will move to another role within Walmart, according to the company.
“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,” said Kalyan Krishnamurthy, chief executive officer at Flipkart Group.
“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 Flipkart Group will further build upon the synergies across its businesses to drive greater value and choice for end-consumers and businesses alike,” Krishnamurthy said.
With the acquisition of the Walmart India business, its employees will join the Flipkart Group and the home office teams will integrate over the next year. The Best Price brand will continue to serve its 1.5 million+ members via its omnichannel network of 28 stores and e-commerce operations.
Last week, Walmart had led a fresh infusion of $1.2 billion in Flipkart, two years after it acquired 77% stake for $16 billion. The investment — which will be done in two tranches this financial year — values the company at $24.9 billion.
According to the company, Flipkart Wholesale will leverage Flipkart’s strong homegrown technology capabilities, extensive leadership in the consumer e-commerce segment, and a unique understanding of the industry in India. The business will also utilise the Flipkart Group’s vast supply chain infrastructure to reach kiranas and MSMEs across the country.
“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. By leveraging each other’s strengths and unique expertise, this combined team will break new ground in their shared mission to help Indian businesses grow and succeed. We look forward to a bright future for Flipkart Wholesale,” said Judith McKenna, President, and chief executive officer at Walmart International.
According to Flipkart, top Indian brands, local manufacturers and sellers have partnered with Flipkart Wholesale to ensure the availability of an exhaustive range of products and merchandise for kiranas and MSMEs.