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Flipkart acquires Walmart India's wholesale business, to launch Flipkart Wholesale in August

business | Jul 23, 2020 12:27 PM IST

Flipkart acquires Walmart India's wholesale business, to launch Flipkart Wholesale in August

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Flipkart Group, on Thursday, announced the acquisition of Walmart India and launch a new digital marketplace - Flipkart Wholesale to tap into the retail market in India.

Flipkart Group, on Thursday, announced the acquisition of Walmart India and launch a new digital marketplace - Flipkart Wholesale to tap into the retail market in India.

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The e-commerce platform has acquired a 100 percent stake in Walmart India, which operates the Best Price cash-and-carry business. This acquisition was announced with the launch of Flipkart Wholesale, a new digital marketplace to help transform the Kirana retail ecosystem in India.
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.
Adarsh Menon, Senior Vice President and Head - Flipkart Wholesale, said, “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 for kiranas and MSMEs.”
Walmart India has more than 1.5 million members and runs 28 stores in the country.
With this reverse acquisition of the business-to-business segment of Walmart in India, Flipkart Wholesale will leverage Flipkart’s technology and its supply chain infrastructure to reach kiranas and MSMEs across the country.
Kalyan Krishnamurthy, Chief Executive Officer, Flipkart Group, said, “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.”
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.
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. We look forward to a bright future for Flipkart Wholesale.”
The announcement comes a week after Flipkart had said it had raised $1.2 billion in funding from a Walmart-led investor group. In 2018, Walmart Inc had invested $16 billion for acquiring 77 percent stake in the group.
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