Flipkart has decided to acquire Walmart India’s cash-and-carry business as it aims to expand its business-to-business vertical.
This step will consolidate Walmart’s complete retail portfolio under the e-commerce giant.
It also stems from the country’s e-commerce war with Reliance Jio’s plans to take advantage of its telecom reach to propel online commerce.
The retailer will launch its Flipkart Wholesale unit next month, starting with fashion and grocery categories and is planning to compete directly with Reliance JioMart, Udaan, Metro Cash & Carry, and Amazon’s B2B division.
Kalyan Krishnamurthy, Chief Executive Officer, Flipkart Group said that this move will extend their capabilities across technology, logistics, and finance to small businesses across the country.
There is potential to strengthen our position to address the needs of small businesses uniquely, he added.
Walmart India CEO Sameer Aggarwal will remain with the company for the transition, after which he will move to another role within Walmart.
“In terms of legal structure, currently Walmart India is a separate entity within the Flipkart Group,” he added.
Walmart India employees will transition to the Flipkart Group. The Best Price brand will continue to operate via its network of 28 stores and ecommerce operations.
Source: Business Today