E-commerce company Flipkart has acquired 100 per cent stake in Walmart India Private Limited, which operates the Best Price cash-and-carry business.
Flipkart said it would leverage the strong wholesale capabilities of the company and enable growth for kiranas and MSMEs (micro, small and medium enterprises).
With this acquisition, the Bengaluru-based firm announced the launch of Flipkart Wholesale, a new digital marketplace that will help transform the kirana retail ecosystem in India by leveraging cutting-edge and locally developed technology.
“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, 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.”
In 2018, Walmart, the world’s largest retailer, invested $16 billion for a majority stake in Flipkart. This month it led a $1.2-billion investment in Flipkart, valuing the e-commerce firm at $24.9 billion.
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, CEO at Walmart India, will remain with the company to ensure a smooth transition, after which time he will move to another role within Walmart.
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.
The acquisition would help Flipkart take on rivals such as Amazon and The Mukesh Ambani-led company’s e-commerce venture JioMart, which are also bringing Kiranas and local shops on their platform and merging online and offline retail.
Flipkart said the small businesses would get attractive schemes and incentives, supplemented with data-driven recommendations for stock selection, delivered through a fast and reliable network to drive greater efficiencies and better margins.
In addition, kiranas and MSMEs will benefit from access to easy credit options and opportunities for new income generation through various Flipkart initiatives, creating new ways to catalyse growth. These opportunities are especially relevant at this time as kiranas and MSMEs work towards achieving scale and profitability following the impact on business due to the Covid-19 pandemic.
Flipkart said it would leverage the strong wholesale capabilities of the company and enable growth for kiranas and MSMEs (micro, small and medium enterprises).
With this acquisition, the Bengaluru-based firm announced the launch of Flipkart Wholesale, a new digital marketplace that will help transform the kirana retail ecosystem in India by leveraging cutting-edge and locally developed technology.
“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, 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.”
In 2018, Walmart, the world’s largest retailer, invested $16 billion for a majority stake in Flipkart. This month it led a $1.2-billion investment in Flipkart, valuing the e-commerce firm at $24.9 billion.
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, CEO at Walmart India, will remain with the company to ensure a smooth transition, after which time he will move to another role within Walmart.
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.
The acquisition would help Flipkart take on rivals such as Amazon and The Mukesh Ambani-led company’s e-commerce venture JioMart, which are also bringing Kiranas and local shops on their platform and merging online and offline retail.
Flipkart said the small businesses would get attractive schemes and incentives, supplemented with data-driven recommendations for stock selection, delivered through a fast and reliable network to drive greater efficiencies and better margins.
In addition, kiranas and MSMEs will benefit from access to easy credit options and opportunities for new income generation through various Flipkart initiatives, creating new ways to catalyse growth. These opportunities are especially relevant at this time as kiranas and MSMEs work towards achieving scale and profitability following the impact on business due to the Covid-19 pandemic.
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