Walmart Considers Large Stake Purchase of Super App; Partners With Tata Group to Raise $25 Billion
INDIA - Walmart has been steadily working toward market domination in India, with the retailer investing heavily in the country’s e-commerce leader Flipkart. Now aiming to compete with online grocer Reliance JioMart, Walmart is in talks with Tata group in regards to purchasing a large stake in the company’s proposed “super” app. This purchase also includes the potential for a whopping $25 billion investment.
"Tata group is in talks with Walmart for a deal entailing a strategic investment by Walmart in the super app platform business. The Walmart investment could touch $20–25 billion eventually for a large stake in the proposed super app to be hosted under a Tata Sons subsidiary," a Tata group leader said, according to The Week.
The news source stated that the proposed super app is expected to power Flipkart’s operations, and, in turn, go head to head with JioMart. If the strategy comes to fruition, this super app would offer Walmart’s products sold through Flipkart. The app would then be run by Tata and Walmart together.
Does this partnership spell out further expansion for Walmart outside of India? Stay tuned as we at ANUK investigate.