Flipkart acquires Walmart India, launches Flipkart Wholesale digital marketplace
Flipkart acquisition of Walmart India : Indian e-commerce company The Flipkart Group has acquired a 100% stake in Wal-Mart India (Walmart India) from US retail giant Walmart for an undisclosed price.
The acquisition is part of Flipkart’s plan to transform the kirana retail ecosystem through the launch of a new digital marketplace called Flipkart Wholesale. Walmart is the majority stakeholder in the Indian e-commerce company with a stake of 77%.
According to the retail companies, Flipkart Wholesale will make use of the latest and domestically developed extensive leadership in the consumer e-commerce segment and technology for the small grocery stores (kirana shops) and other small retailers in India.
Walmart India has 28 wholesale stores in the country which offer around 5,000 items in a cash and carry wholesale format. The retail company also has two fulfillment centers in India at Lucknow, Uttar Pradesh and Hyderabad, Telangana.
Kalyan Krishnamurthy – CEO of Flipkart Group said: “As the e-commerce pioneer in India, the Flipkart Group has transformed the shopping experience for millions of Indian consumers. 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.”
Flipkart acquires Walmart India. Photo courtesy of Walmart Inc.
Flipkart Wholesale will begin its operations next month and will trial services for the grocery and fashion segments. The new digital marketplace will be led by Adarsh Menon, a Flipkart veteran. Walmart India’s present CEO Sameer Aggarwal will remain with the retailing company for ensuring a seamless transition, following which, he will be transferred to another role within Walmart.
Adarsh Menon – Senior Vice President and Head of Flipkart Wholesale said: “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.
“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.”