Major and surprising news came out from Flipkat saying that the E-commerce player Flipkart Group has acquired 100 percent stake in Walmart India.
Walmart India operates the Best Price cash-and-carry business, and launched a new digital marketplace, Flipkart Wholesale.
The move will allow Flipkart to leverage the strong wholesale capabilities of the company and enable growth for kiranas and MSMEs. It will also strengthen the grocery business that is getting increasingly competitive.
“With the launch of Flipkart Wholesale, we will now extend our capabilities across technology, logistics and finance to small businesses across the country,” Flipkart Group Chief Executive Officer Kalyan Krishnamurthy said.
Flipkart Wholesale will be launched in August 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.
“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,” Krishnamurthy said.
Kiranas and MSMEs are central to India’s retail ecosystem and Flipkart Wholesale will focus on meeting their needs by providing small businesses a wide selection at significant value.
In addition, kiranas and MSMEs will have access to credit options and opportunities for new income generation through various Flipkart initiatives.
Best Price has more than 1.5 million members, including kiranas and other MSMEs.
“For over a decade, we’ve been committed to India’s prosperity by serving kiranas and MSMEs, supporting smallholder farmers and building global sourcing and technology hubs throughout the country. 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,” said Judith McKenna, President and Chief Executive Officer, Walmart International.
By leveraging each other’s strengths and unique expertise, the team would break new ground in their shared mission to help Indian businesses grow and succeed, she said.