The eCommerce player Flipkart has acquired 100% stake in parent Walmart’s loss-ridden cash-and-carry business in India, Best Price, marking a consolidation of the American major’s entire retail portfolio in the country. The deal, announced on Thursday, clears the decks for Flipkart to expand its business-to-business vertical and take the fight to rivals Amazon and Reliance JioMart in the race to woo the legions of small retailers across the country.
According to reports, Flipkart Wholesale will be launching its operations in August and will pilot services for the grocery and fashion segments.
Walmart India owns and operates 28 Best Price Modern Wholesale stores offering nearly 5,000 items in a Cash & Carry wholesale format and owns two fulfillment centers in Lucknow and Hyderabad.
“With the launch of Flipkart Wholesale, we will now extend our capabilities across technology, logistics and finance to small businesses across the country,” Flipkart Group chief executive officer Kalyan Krishnamurthy told PTI.
“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,” Krishnamurthy said.
However, the company declined to share financial details of the transaction saying that only Walmart India employees will move to the Flipkart Group. Adarsh Menon, a veteran at Flipkart will be heading the new business vertical whereas Sameer Aggarwal, Walmart India chief executive, will remain with the company to ensure a smooth transition, after that, he will move to another role within Walmart.
“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 chief executive officer, Walmart International.
