Flipkart acquires Walmart India's wholesale business; launches Flipkart Wholesale
By Retail4Growth Team | July 23, 2020
The company has acquired a 100 percent stake in Walmart India, which operates the Best Price cash-and-carry business to strengthen capabilities and business-to-business service offering, says the company
In a reverse acquisition of the business-to-business segment, Flipkart Group today announced the acquisition of Walmart India. The eCommerce firm also announced the launch of Flipkart Wholesale, a whole new digital marketplace to help "transform the kirana retail ecosystem" in India.
The company has acquired a 100 percent stake in Walmart India, which operates the Best Price cash-and-carry business to strengthen capabilities and business-to-business service offering, the company said.
The launch of Flipkart Wholesale will leverage talent, strong technology backbone, deep merchandising expertise and logistics infrastructure to accelerate growth and prosperity for kiranas and MSMEs, the company maintained.
"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," Kalyan Krishnamurthy, Chief Executive Officer, Flipkart Group, said.
Flipkart Wholesale will be headed by Adarsh Menon, Flipkart veteran, and Walmart India CEO Sameer Aggarwal will move to another role in Walmart after ensuring smooth transition. Notably, Walmart India has around 28 Best Price stores in India besides two fulfillment centers and supports around 1.5 million members.
Judith McKenna, President and Chief Executive Officer, Walmart International said, "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".
The company had recently acquired nearly 27 percent stake in Arvind Fashions Ltd subsidiary Arvind Youth Brands for Rs 260 crore.