Now Flipkart Launched Walmart In India And India’s leading e-commerce company Flipkart Group has bought Walmart India. Flipkart acquires 100% stake in Walmart India. With this, Flipkart is also bringing a new digital marketplace Flipkart Wholesale. This move will enable Walmart to take advantage of the strong wholesale capabilities of India and boost the growth of grocery and MSMEs. The move will also strengthen the company’s grocery business, which is becoming increasingly competitive.
Flipkart Group has announced the launch of a new digital market ‘Flipkart Wholesale’ to enter India’s $ 650billion wholesale business market. In addition, the company has also bought a 100 percent stake in Walmart India Private Limited. Walmart India operates wholesale shops under the name ‘Best Price’ in the country. It currently has 28 stores across the country. The announcement was made by Flipkart at a time when the company recently raised $ 1.2 billion from a Walmart-led group of investors.
However, Flipkart has not disclosed the value of the acquisition deal of Walmart India. Significantly, Walmart India, one of the largest retail trading companies in the world, is a wholly-owned subsidiary of Walmart. Walmart invested $ 16 billion in 2018 to buy a 77 percent stake in Flipkart.
B2B Will Flipkart Wholesale
The company said in a statement that ‘Flipkart Wholesale’ will be a B2B (inter-business between companies) digital market. Flipkart will start its operations in August. The company said that it will focus on sustaining the lives of the country’s retail market and meeting the needs of Small and Medium Enterprises (MSME). The company will provide the small business sector the opportunity to choose from a wide range of products at reasonable prices. Flipkart Wholesale will be led by Adarsh Menon, a senior employee of the company.
3500 Other Employees Will Join Flipkart
At the same time, Samir Aggarwal, Chief Executive Officer of Walmart India will continue in his post till the acquisition is completed. After that, he will be given some other responsibility at Walmart itself. At the same time, around 3,500 other employees of Walmart India will join Flipkart. The statement said, “Grocery goods or clothing-apparel, all these products will be in place and customers will have the opportunity to choose from a wide range with attractive plans “.After this these goods will be supplied to customers through a reliable network which will increase margins. “
About 1.5 Million People Are Associated With ‘best Price’
Walmart’s ‘Best Price’ has now added nearly 1.5 million people. This includes grocery and other MSMEs. The statement said that big Indian brands, local manufacturers, and vendors have partnered with Flipkart Wholesale to make more products available for grocery and MSME.
Flipkart CEO Kalyan Krishnamurthy said that the acquisition of Walmart India would benefit Flipkart from their deep understanding and employee experience in the wholesale business. This will strengthen our position to meet the needs of grocery and MSME.
Kalyan Krishnamurthy, Chief Executive Officer (CEO) of Flipkart Group said, “With the launch of Flipkart Wholesale, we will enhance our capabilities in technology, logistics and financing small businesses across the country.”
Let us tell you The Filipkart the wholesale unit will be launched in August and will first have services for the grocery and fashion categories. Samir Aggarwal said that Chief Executive An officer at Walmart India will remain with the company to ensure a smooth transition, after which he will move to another role within Walmart.
Let me tell you that about two years ago, Walmart bought a 77 percent stake in Flipkart for $ 16 billion. Now Flipkart has bought Walmart India itself. The company has done the deal at a time when Reliance’s Geomart is moving fast in the country’s e-commerce sector. After the Flipkart wholesale launch, the company will have direct competition from
Geomart, Udaan, Metro Cash & Carry, and Amazon’s B2B division.
Krishnamurthy said, “The acquisition of Walmart India adds a strong talent pool with deep expertise in wholesale business, which will strengthen our position in addressing the needs of grocery and MSMEs”.Retail Business Will Get Help
Walmart India runs cash and carry wholesale business called ‘Best Price’ in India. Flipkart wants to strengthen its business to business service with this purchase and is also preparing for a change in the retail grocery where Reliance Geomart has emerged as a major challenge.
Flipkart’s senior executive Adarsh Menon has been made the head of Flipkart Wholesale, while Samir Aggarwal, CEO of Walmart India will be hired elsewhere. Walmart India has 28 Best Price Stores across the country and has about 1.5 million business associates.
What did Walmart say The company said in a statement, “The launch of Flipkart Wholesale will help in better utilization of talent, strong technology base, expertise in commodity trading and logistic framework and will give a boost to grocery and MSMEs.”
Judith Mckenna, President and Chief Executive Officer of Walmart International, said, “This is a big step because the cash and carry the legacy of Walmart India and the culture of innovation of Flipkart are getting mixed up.” By using each other’s strengths and strengths, this joint team will achieve a new status.
Recently Flipkart announced that it will raise $ 1.2 billion from Walmart-led investors. Now the valuation of the company has been around $ 24.9 billion. Let us tell you In May 2018, Walmart bought a 77 percent stake in Flipkart for $ 16 billion. At that time Flipkart was valued at $ 21 billion. The company recently bought Arvind Youth Brands, a subsidiary of Arvind Fashion Limited, for Rs 260 crore.