The Flipkart Group has acquired Walmart India’s wholesale business as it launches a new digital marketplace ‘Flipkart Wholesale’. Flipkart said in a statement that it is acquiring 100% interest in Wal-Mart India Private Limited, which operates the Best Price cash-and-carry business. Flipkart Group is looking to leverage Walmart’s wholesale capabilities in India to help meet the needs of kirana stores and Micro Small and Medium Enterprises (MSMEs).
Flipkart Wholesale will focus on meeting their needs by providing small businesses a wide selection across grocery, general merchandise or fashion. Flipkart says that the wholesale platform will also have attractive schemes and incentives, supplemented with data-driven recommendations for stock selection.
The company will also be offering credit options and opportunities for new income generation through various Flipkart initiatives to kirana stores and MSMEs.
The business will also utilise the Flipkart Group’s supply chain infrastructure to reach kiranas and MSMEs across the country.
Flipkart Wholesale will launch its operations in August 2020 and will pilot services for the grocery and fashion categories. It will be headed by 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.
“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,” Kalyan Krishnamurthy, Chief Executive Officer, Flipkart Group, said in a statement.
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.
Through the acquisition of Walmart India, Flipkart Wholesale says it will draw on the merchandising experience of the Walmart India team, its strong relationships with brands, ‘deep DNA of servicing kiranas and 12+ years of operating Best Price stores’.
Flipkart claims that Best Price currently supports more than 1.5 million members, including kiranas, horecas and other MSMEs, and has long-standing supplier diversity and development programs.
The Best Price brand will continue operate via its omnichannel network of 28 stores and e-commerce operations.
Top Indian brands, local manufacturers and sellers have partnered with Flipkart Wholesale to ensure the availability of an exhaustive range of products and merchandise for kiranas and MSMEs.
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.”