In Reverse Acquisition, Flipkart Buys Walmart India’s Wholesale Business

The reverse acquisition of the business-to-business segment of Walmart in India, will give Flipkart the opportunity to expand its footprint in the food and grocery segment

Photo: AFP

New Delhi, July 23: In a major development in the e-commerce space, homegrown e-commerce company Flipkart Group has acquired 100 per cent stake in Walmart India Pvt Ltd, which operates the Best Price cash-and-carry business. According to the business daily Mint, the Flipkart Wholesale, a new digital marketplace, will commence its operations in August and will pilot services for the grocery and fashion segment.  Also Read: Now, Put Recurring Payments On Auto Mode Of Up To Rs 2,000 Through UPI App

Senior vice-president of Flipkart old-timer Adarsh Menon will lead the new business vertical. Walmart India CEO Sameer Aggarwal will continue to ensure a smooth transition post which Aggarwal will shift to a different role within Walmart.

In this reverse acquisition of the business-to-business segment of Walmart in India, Flipkart will get the opportunity to expand its footprint in the food and grocery segment and further strengthen its supply chain. Walmart India operates 28 Best Price stores and has two fulfilment centres. The Walmart’s entire retail portfolio under the Flipkart Group will get a boost, nearly two years after Walmart acquired a majority stake in the homegrown retail major for $16 billion, as per the Economic Times report.

Walmart India employees will transition to the Flipkart Group. The Best Price brand will continue to operate via its network of 28 stores and e-commerce operations.

AT the beginning of this year, Flipkart has been ramping up its supply chain capabilities in the run-up to the launch. The company has already piloted FMCG retail to kirana (mom and pop corner stores) in the Delhi NCR region.

Earlier in July, Walmart Inc has invested $1.2 billion in Flipkart Group, taking the company’s valuation at $24.9 billion. It was 19 per cent higher than when it sold a majority stake to the US retail major. It is perhaps the largest such fundraising for the homegrown brand since Walmart acquired it two years ago.

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