Walmart India's Wholesale Division Acquired by Flipkart
INDIA - It’s not often that big-box retail divisions are acquired, but we at ANUK are always on the lookout. Today, The Flipkart Group acquired 100 percent interest in Walmart India Private Limited, which operates the Best Price cash-and-carry business, to leverage its strong wholesale capabilities and enable growth and prosperity for the Indian economy. The acquisition will ultimately lead to the launch of Flipkart Wholesale, a new digital marketplace that will help transform the kirana and MSMEs retail ecosystem in India by leveraging cutting-edge and locally developed technology.
“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,” 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.”
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-plus members via its omnichannel network of 28 stores and e-commerce operations, according to a press release.
Flipkart Wholesale will launch its operations in August 2020 and will pilot services for the grocery category. It will be headed by Senior Vice President and Head 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.
“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,” said Menon. “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.”
Not only does the acquisition stregthen Flipkart Wholesale, but it strengthens the economy in India as well.
Flipkart Wholesale will leverage Flipkart’s strong homegrown technology capabilities, extensive leadership in the consumer e-commerce segment, and a unique understanding of the industry in India.
“This move recognizes the critical role that kiranas and MSMEs play towards India’s economic prosperity and growth, and the coming together of Walmart India with Flipkart Wholesale will provide an opportunity to build upon the 12+ year legacy of the Best Price brand serving kiranas across India,” said Aggarwal.
The business will also utilize The Flipkart Group’s vast supply chain infrastructure to reach kiranas and MSMEs across the country.
Kiranas and MSMEs are central to India’s retail ecosystem and Flipkart Wholesale will focus on providing small businesses a wide selection at significant value, powered by technology to make their lives easier.
“As the e-commerce pioneer in India, the Flipkart Group has transformed the shopping experience for millions of Indian consumers,” Kalyan Krishnamurthy, Chief Executive Officer, Flipkart Group, said. “With the launch of Flipkart Wholesale, we will now extend our capabilities across technology, logistics, and finance to small businesses across the country. 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.”
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