Flipkart acquires Walmart India’s wholesale business
Mumbai: Flipkart said its wholesale unit will acquire Walmart India’s cash-and-carry business that owns the Best Price brand, as the eCommerce giant looks to scale its business-to-business vertical. Walmart India employees will transition to the Flipkart Group. The Best Price brand will continue to operate via its network of 28 stores and e-commerce operations.
#News: @Flipkart Group announces the launch of Flipkart Wholesale, acquires 100% interest in @walmartindia & @BestPriceWMT to strengthen capabilities and B2B service offerings for kiranas and MSMEs
Read more: https://t.co/W6kFkRXN3G @_Kalyan_K @AdarshKMenon @samaggarwal_ pic.twitter.com/WsAJeX78Mp
— Flipkart Stories (@FlipkartStories) July 23, 2020
The move will consolidate Walmart’s entire retail portfolio under the Flipkart Group, nearly two years after it acquired a majority stake in the homegrown retail major for $16 billion. It also comes at a time when India’s e-commerce battle is being redrawn with Reliance JioMart’s plans to leverage its telecom reach to propel online commerce.
The retailer will launch its Flipkart Wholesale unit next month, starting with fashion and grocery categories, opening doors to competing directly with other deep-pocketed players like JioMart, Udaan, Metro Cash & Carry, and Amazon’s B2B division.
“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 will strengthen our position to address the needs of kiranas and MSMEs uniquely,” said Kalyan Krishnamurthy, Chief Executive Officer, Flipkart Group.
Walmart India CEO Sameer Aggarwal will remain with the company for the transition, after which he will move to another role within Walmart. “The combination allows us to grow much faster and become much bigger.” Even as Flipkart begins scaling up the operations, the Best Price business will continue to run as it is, he clarified.