Today Flipkart group has announced its acquisition of Walmart India‘s Wholesale business to launch a new digital marketplace which will be named Flipkart Wholesale that will tap into the retail market in India.
Walmart India operates the best price cash-and-carry business and the e-commerce platform, Flipkart has acquired a 100% stake in the same. The acquisition and the launch of the Flipkart Wholesale were announced at the same time. It is said that this new digital marketplace will help n the transformation of the Kirana retail ecosystem in the country.
Flipkart Wholesale will be launched this year in August month and it said that it will pilot services for the fashion and grocery categories. A veteran at Flipkart, Mr. Adarsh Menon will be heading it. The Chief Executive Officer of Walmart India, Mr. Sameer Aggarwal will remain in the company to make sure that the transition goes smoothly and after this, he will be moved to another post within the company (Walmart) itself.
“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. I am excited to be part of this new initiative that allows us to expand opportunities for growth for them and bring further prosperity to their lives. We will leverage the synergies between Flipkart and Walmart India as we stay focused on transforming the wholesale experience of Kiranas and MSMEs,” said the Senior Vice President and Head of Flipkart Wholesale, Mr. Adarsh Menon.
The Walmart India runs twenty-eight stores in India with possession of 1.5 million members.
Now the acquisitions have reversed and with this reversed acquisition of Walmart India’s business-to-business segment, the new digital marketplace (Flipkart Wholesale) will leverage the supply chain infrastructure of Flipkart and its technology to reach MSMEs and Kiranas all over the nation.
“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 business to drive greater value and choice for end consumers and business alike,” said the Chief executive officer of Flipkart Group, Mr. Kalyan Krishnamurthy.
Because of this acquisition, the employees of Walmart India business will join the Flipkart Group and the integration of Home office teams will be done by the next year.
“Today marks the next big step of 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 of Flipkart Wholesale,” said the CEO and President of Walmart International, Judith McKenna.
Flipkart said that it had raised 1.2 billion dollars in funding from a Walmart-led investor group, and this announcement of acquisition is made just after a week of that. In the year 2018, Walmart had invested sixteen billion dollars for acquiring a 77% stake in the group.