Here’s the tea –
The famous ecommerce player Flipkart has acquired a 100% stake in Walmart India Pvt Ltd, which runs the Best Price cash-and-carry business, and has launched Flipkart Wholesale, a new digital marketplace for everyone. The step would allow Flipkart to strengthen the company's strong wholesale capability and support the growth of kiranas and small and medium-sized enterprises. It would also boost the food industry that is becoming highly profitable.
Flipkart Group Chief Executive Officer Kalyan Krishnamurthy said, “With the launch of Flipkart Wholesale, we will now extend our capabilities across technology, logistics and finance to small businesses across the country.” Flipkart Wholesale that is said to be launched in August and will pilot services for the grocery and fashion departments.
This new business vertical will be headed by the Flipkart veteran, Adarsh Menon. Although Sameer Aggarwal, the CEO of Walmart India will remain with the company to assure a safe transition, post which he’ll move to some other 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," said Krishnamurthy.
In addition to this, kiranas and small and medium-sized companies will have access to credit options and new revenue generating opportunities through various Flipkart initiatives.
Best Price has more than 1.5 million owners, including kiranas and other small and medium-sized businesses. This transformation of Walmart's business-to-business division in India would help Flipkart broaden its retail and grocery presence and improve its supply chain. Walmart India runs 28 Best Price stores and has two fulfillment centres.
Flipkart's new B2B or wholesale online market will appeal to the mostly unorganized kirana segment and smaller shops can order products directly from this portal.
“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 CEO, Walmart International.
The Flipkart Group's investment value is $24.9 billion in post-money valuation, with funds projected to come across in two tranches over the rest of the fiscal year.
“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. We will leverage the synergies between Flipkart and Walmart India as we stay focused on transforming the wholesale experience for kiranas and MSMEs." said Adarsh Menon, Senior Vice President and Head - Flipkart Wholesale.
So that was the tea.
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