Flipkart Group has acquired 100% stake in Walmart India Pvt Ltd, which operates the Best Price cash-and-carry business, and has launched Flipkart Wholesale, a new digital marketplace.
The wholesale B2B segment will be launched in August and will pilot services for the grocery and fashion segment. The move will allow Flipkart to leverage the strong wholesale capabilities of the company and enable growth for kiranas and MSMEs. It will also strengthen the grocery business that is getting increasingly competitive.
Kiranas and MSMEs are central to India’s retail ecosystem and Flipkart Wholesale will focus on meeting their needs by providing small businesses a wide selection at significant value.
In addition, kiranas and MSMEs will have access to credit options and opportunities for new income generation through various Flipkart initiatives. Best Price has more than 1.5 million members, including kiranas and other MSMEs.
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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,”
“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.
The new business venture will be headed by Adarsh Menon, Flipkart veteran. Sameer Aggarwal, Walmart India CEO, will remain with the company to ensure a smooth transition, after which time he will move to another role within Walmart.
She further added, “By leveraging each other’s strengths and unique expertise, the team would break new ground in their shared mission to help Indian businesses grow and succeed”.
This reverse acquisition of the business-to-business (B2B) segment of Walmart in India will help Flipkart to expand it’s venture in the food and grocery segment and strengthen its supply chain. Walmart India currently operates 28 Best Price stores and has two fulfilment centres.
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