Walmart consolidates in India with Flipkart Wholesale launch

Stewart Samuel
Program Director - Canada
@RetailAnalysis

Date : 23 July 2020

Walmart’s majority-owned Flipkart operation in India is launching a new wholesale business. As part of this initiative, Flipkart is acquiring Walmart’s existing business in India.

Slow progress in developing its wholesale stores

Walmart entered the Indian market over 10 years ago, initially forming a joint venture with Bharti Enterprises. When this was terminated in 2013, Walmart acquired the full-ownership of Best Price Modern Wholesale, which currently operates 28 units in the country along with an ecommerce business. Only recently has Walmart started to expand this, having previously outlined plans to grow the network to 50 stores.

Flipkart Wholesale to launch in August

The launch of Flipkart Wholesale provides the retailer with the opportunity combine the businesses and strengthen its capabilities and business-to-business offer. Walmart currently has an ownership stake of around 80% in Flipkart. This launch follows-on from a recent new $1.2bn equity round which valued the Flipkart Group at $24.9bn. Flikpart Wholesale will launch in August, led by Adarsh Menon. Sameer Aggarwal, Walmart India’s CEO, will remain with the company to support the transition before moving to another role within Walmart.

Source: Walmart

Drawing on CPG brand relationships

Flipkart Wholesale is a new digital marketplace which will optimise the ecommerce company’s expertise in the consumer segment to support the transformation of India’s retail ecosystem. It will also draw on the experience of Best Price Modern Wholesale in working with kiranas and other small retailers over the last decade and the relationships it has established with brand owners. This will also support Flipkart with developing and growing its grocery ecommerce business.

Digital capabilities

This is a significant opportunity for the business, with over 12m kirana stores operating throughout the country. Flipkart plans on optimising its data and analytical capabilities to support business owners with ranging recommendations, utilising its supply chain infrastructure and providing access to easy credit options.

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