BENTONVILLE, Ark., BANGALORE, India - July 23, 2020 — The Flipkart Group, India’s homegrown e-commerce group, today announced the launch of Flipkart Wholesale, a new digital marketplace that will help transform India’s retail ecosystem by leveraging cutting-edge and locally developed extensive leadership in the consumer e-commerce segment and technology for the country’s mom-and-pop “kirana” grocery stores and other small retailers. As part of this launch, the Group also announced the acquisition of 100% interest in Wal-Mart India Private Limited, which operates the Best Price cash-and-carry business, to leverage the strong wholesale capabilities of the company and enable growth and prosperity for the nation’s kiranas and micro-, small- and medium-sized enterprises (MSMEs).
The launch and acquisition follow the recent announcement of a new $1.2 billion equity round, valuing the Flipkart Group at $24.9 billion post-money.
Kiranas and MSMEs are central to India’s retail ecosystem, with around 12 million kirana stores serving neighborhoods throughout the country. Flipkart Wholesale will focus on meeting their needs by providing a wide product selection at significant value, powered by technology to make their lives easier. Whether in grocery, general merchandise or fashion, these businesses will have one-stop access to an extensive selection of products with attractive schemes and incentives, supplemented with data-driven recommendations for stock selection, delivered through a fast and reliable network to drive greater efficiencies and better margins.
In addition, kiranas and MSMEs will benefit from access to easy credit options and opportunities for new income generation through various Flipkart initiatives, creating new ways to catalyze growth. These opportunities are especially relevant at this time as kiranas and MSMEs work towards achieving scale and profitability following the COVID-19 pandemic.
Flipkart Wholesale will leverage Flipkart’s strong homegrown technology capabilities, extensive leadership in the consumer e-commerce segment and unique understanding of the industry in India. The business will also utilize the Flipkart Group’s vast supply chain infrastructure to reach kiranas and MSMEs across the country. Flipkart Wholesale will draw on the merchandising experience of the Walmart India team, its strong relationships with brands and its deep DNA of servicing kiranas. One of India’s largest cash-and-carry businesses, Best Price currently supports more than 1.5 million members, including kiranas, hospitality and catering businesses and other MSMEs, and has long-standing supplier diversity and development programs built over its more than 12 years of operation. Flipkart Wholesale will continue Best Price’s legacy of developing technology tools and ecosystem partnerships to help Indian commerce unlock its potential.
Top Indian brands, local manufacturers and sellers have partnered with Flipkart Wholesale to ensure the availability of an exhaustive range of products and merchandise for kiranas and MSMEs. At the same time, partners will benefit from broader reach across the country, micro-market insights to enable effective inventory planning and new product development and cost-effective distribution.
Kalyan Krishnamurthy, Chief Executive Officer, Flipkart Group, said, “As the e-commerce pioneer in India, the Flipkart Group has transformed the shopping experience for millions of Indian consumers. With the launch of Flipkart Wholesale, we will now extend our capabilities across technology, logistics and finance to small businesses across the country. 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. With this development, the Flipkart Group will further build upon the synergies across its businesses to drive greater value and choice for end-consumers and businesses alike.”
Judith McKenna, President and Chief Executive Officer, Walmart International, said, “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. By leveraging each other’s strengths and unique expertise, this combined team will break new ground in their shared mission to help Indian businesses grow and succeed. We look forward to a bright future for Flipkart Wholesale.”
Flipkart Wholesale will launch its operations in August 2020 and will pilot services for the grocery and fashion categories. It will be headed by Adarsh Menon, a veteran at Flipkart. Sameer Aggarwal, Chief Executive Officer at Walmart India, will remain with the company to ensure a smooth transition, after which time he will move to another role within Walmart.
Adarsh Menon, Senior Vice President and Head, Flipkart Wholesale, said, “Flipkart Wholesale will further deepen and build on Walmart India and the Flipkart Group’s commitment to kiranas and MSMEs over the last several years. Thousands of kiranas have already partnered with Flipkart to enhance their business and income streams. I am excited to be part of this new initiative that allows us to expand opportunities for growth for them and bring further prosperity to their lives. We will leverage the synergies between Flipkart and Walmart India as we stay focused on transforming the wholesale experience for kiranas and MSMEs.”
Sameer Aggarwal, Chief Executive Officer, Walmart India, said, “This move recognizes the critical role that kiranas and MSMEs play in India’s economic prosperity and growth. The coming together of Walmart India with Flipkart Wholesale will provide an opportunity to build upon the more than 12-year legacy of the Best Price brand serving kiranas across India.”
With the acquisition of the Walmart India business, its employees will join the Flipkart Group and the home office teams will integrate over the next year. The Best Price brand will continue to serve its 1.5 million members via its omnichannel network of 28 stores and e-commerce operations.
For more information, please contact Rebecca Lui at rebecca.lui@walmart.com.
About Walmart Inc. in India
For over a decade, Walmart Inc. has maintained a commitment to benefit people and businesses across India. It enables a mix of shopping experiences and helps local sellers and suppliers, including kiranas, MSMEs, farmers, artisans and women-owned businesses, to modernize, prosper and create local jobs. Walmart India Development Center is engaged in cutting-edge engineering and product development to offer customers anywhere, anytime shopping experience. Walmart’s Bangalore Global Sourcing hub exports high-quality India-made goods to major markets worldwide. The Walmart India Development Center and Walmart Global Sourcing will continue to operate under their existing structure and remain unchanged by this acquisition. The Flipkart Group operates India’s leading e-commerce ecosystem, with Flipkart; fashion site Myntra; Flipkart Wholesale, which now includes the Best Price brand; the PhonePe payments and financial services platform; and the Ekart logistics network.
About the Flipkart Group
The Flipkart Group is one of India's leading digital commerce entities and includes group companies Flipkart, Myntra, and PhonePe. Started in 2007, Flipkart has enabled millions of consumers, sellers, merchants and small businesses to be a part of India's e-commerce revolution. With a registered customer base of over 200 million, offering over 150 million products across 80+ categories. Our efforts to democratize e-commerce in India, drive access and affordability, delight customers, create lakhs of jobs in the ecosystem and empower generations of entrepreneurs and MSMEs has inspired us to innovate on many industry firsts. Flipkart is known for pioneering services such as Cash on Delivery, No Cost EMI and easy returns – customer-centric innovations that have made online shopping more accessible and affordable for millions of Indians. Together with Myntra, which holds a prominent position in the online fashion market, and PhonePe, India's fastest growing digital payments platform, the Flipkart Group is steering the transformation of commerce in India through technology.
About Walmart
Walmart Inc. (NYSE: WMT) helps people around the world save money and live better - anytime and anywhere - in retail stores, online, and through their mobile devices. Each week, over 265 million customers and members visit approximately 11,500 stores under 56 banners in 27 countries and eCommerce websites. With fiscal year 2020 revenue of $524 billion, Walmart employs over 2.2 million associates worldwide. Walmart continues to be a leader in sustainability, corporate philanthropy and employment opportunity. Additional information about Walmart can be found by visiting corporate.walmart.com, on Facebook at facebook.com/walmart and on Twitter at twitter.com/walmart.
FAQs
What is Walmart's plan in India and what is it likely to do through Flipkart? ›
With the investment, Flipkart will leverage Walmart's omni-channel retail expertise, grocery and general merchandise supply-chain knowledge and financial strength, while Flipkart's talent, technology, customer insights and agile and innovative culture will benefit Walmart in India and across the globe.
What kind of acquisition was of Flipkart and Walmart? ›In what's called a reverse merger, the company bought Walmart's 12-year old business in India which has expanded to 28 stores and 1.5 million members.
What does Flipkart do for Walmart? ›Flipkart acquires 100% interest in Wal-Mart India Private Limited, which operates the Best Price wholesale business, to strengthen capabilities and business-to-business service offering; Will leverage talent, strong technology backbone, deep merchandising expertise and logistics infrastructure to accelerate growth and ...
Is Walmart India owned by Flipkart? ›In May 2018, after more than half a year of negotiations, Walmart agreed to pay $16 billion for a 77% stake in Flipkart. It remains Walmart's biggest-ever deal.
How Walmart is pivoting its strategy to win the Indian market? ›To survive and thrive in India's complex business environment, Walmart moved away from selling to customers directly by opening cash-and-carry (CC) format stores – to sell to small wholesale buyers, with 100% FDI allowed in cash-and-carry wholesale ventures.
What is Walmart's Flipkart acquisition a showstopper deal? ›The deal would provide Walmart with the opportunity to expand globally in competition with its old rival, Amazon.com Inc., and it would provide Flipkart with additional capital to operate in a hypercompetitive environment and an opportunity to leverage Walmart's omni-channel retail expertise.
What percentage of Flipkart does Walmart own? ›Flipkart is incorporated in Singapore and wants to list in the United States, they added. Walmart acquired a roughly 77% stake in Flipkart for about $16 billion in 2018 - its biggest deal ever - and said later that year that it could take the company public in four years.
Which Indian company did Walmart buy? ›Walmart, which has been running Best Price wholesale cash-and-carry stores in India since 2009, bought a controlling stake in Flipkart in 2018 for $16 billion.
What is Walmart's largest acquisitions? ›Walmart's largest acquisition to date was in 2018, when it acquired Flipkart Internet Pvt. for $16.0B. It's largest disclosed sale occurred in 2020, when it sold Asda Stores to TDR Capital for $10.5B. Walmart has acquired in 9 different US states, and 7 countries.
Did Walmart sell Flipkart? ›The deal was first revealed back in May and now it has closed after receiving the necessary approvals. It sees Walmart take a 77 percent share in the company, buying out a number of prior investors in the process and expanding its rivalry with Amazon to a new horizon.
Is Walmart doing business in India? ›
Walmart Global Tech in India is where we build technology solutions to help millions of Walmart customers around the world.
What is benefits of Flipkart? ›| Benefit | Description |
|---|---|
| Unique Perk | Retirement Benefits - You receive a contribution of INR 1800 per month from Flipkart towards your PF, fully exempt from tax. |
| Unique Perk | Car Lease Program |
| Unique Perk | ESOP - Vesting schedule: 25% after the first year, followed by equal monthly instalments. |
The Indian government does not allow foreign multi-brand giants like Walmart to open front-end stores in the country on their own. That is why the American retailer had entered into a joint venture with telecom major Bharti Enterprises in 2007 to create Bharti-Walmart.
Is Walmart considered a wholesaler or retailer? ›Retail companies sell a huge variety of products and services to consumers. They conduct their sales at brick-and-mortar locations and/or online. Retail sales are part of consumer spending. The biggest retail company, with TTM revenue of $600.1 billion, is Walmart.
How successful is Walmart in India? ›Walmart is the largest retailer in the world, but it has not been able to make inroads into the Indian market. There are a number of reasons for this, the most important being India's complex laws and regulations. Another reason is that Walmart is seen as a discount store, and India is a country of luxury shoppers.
What is Walmart's main strategy? ›Every Day Low Prices on a Broad Assortment - Anytime, Anywhere. Every Day Low Price (EDLP) is the cornerstone of our strategy, and our price focus has never been stronger. Today's customer seeks the convenience of one-stop shopping that we offer.
What is Walmart's business growth strategy? ›Walmart will outline how the company expects its growth investments to transform its financial profile, centering on three key building blocks: sales growth from its omni-channel business model; diversifying earnings streams through improved category and business mix; and scaling proven, high-return investments that ...
What type of strategy does Walmart have? ›Walmart's business strategy is to make every day easier for busy families, operate with discipline, sharpen the culture and become more digital, and trust a competitive advantage. Price leadership has been a cornerstone of Walmart's business strategy and model.
Who bought stake in Flipkart? ›Tencent, a Chinese technology conglomerate, has bought a stake worth USD 264 million (approx. Rs2,060 crore) in Flipkart. Tencent has bought this stake from Flipkart’s co-founder Binny Bansal via its European subsidiary. Flipkart is a Singapore-headquartered e-commerce company having operations in India only.
Is Flipkart available in USA? ›Flipkart does not ship to the USA. So it makes it difficult for all the NRIs/PIOs to shop from Flipkart because it does not do Flipkart international shipping. Therefore.
Why is Walmart the world's largest retailer? ›
Walmart has always focused on providing value to its customers by offering low prices and a wide variety of products. This has helped it to become the largest retail giant in the world.
Is Walmart the world's largest private employer and the largest retailer? ›Walmart is the world's largest company by revenue, with about US$570 billion in annual revenue, according to the Fortune Global 500 list in October 2022. It is also the largest private employer in the world with 2.2 million employees.
What does Walmart import from India? ›The move underscores India's growing strength in the toys industry, especially since India was a net importer of toys until a few years ago. Walmart Inc. is looking to source toys, shoes and bicycles from India, as part of its endeavour to increase its exports from India to $10 billion annually by 2027.
How would Walmart business in America be different from India? ›I. The business is America is mostly brick and mortar while it is online in nature in India. II. Walmart owns about 88% of the market share in America but hardly any in the Indian market.
Has Walmart invested in India? ›Walmart, which missed the e-commerce race in the U.S., has coughed up over $20 billion on Flipkart and PhonePe to buy the lion's share in India's e-commerce and payments markets. Flipkart leads the e-commerce market in India, according to Bernstein.
Who is Walmart's top investor? ›| Name | Equities | % |
|---|---|---|
| Walton Enterprises LLC 37.13 % | 1,000,891,131 | 37.13 % |
| Walton Family 8.912 % | 240,230,516 | 8.912 % |
| The Vanguard Group, Inc. 4.616 % | 124,437,123 | 4.616 % |
| Geode Capital Management LLC 0.8618 % | 23,230,645 | 0.8618 % |
Jim Walton, Alice Walton, and Rob Walton are the top three individual shareholders of Walmart. Walmart's largest institutional investors include the John T. Walton Estate Trust, Vanguard Group, and BlackRock.
What brands has Walmart acquired? ›Over the past few years, Walmart has been unfurling its ties to the host of e-commerce and direct-to-consumer companies it acquired several years ago. Between 2016 and 2018, the mass retailer moved heavily into the e-commerce space by acquiring ModCloth, Bare Necessities, Jet, Shoes.com, Moosejaw, Bonobos and Eloquii.
What challenges has Walmart faced throughout its expansion into India? ›- Wal-Mart Stores in India. ...
- CHALLENGES FOR WAL-MART. ...
- Existing Set-up. ...
- 'Cheap and fresh' perception. ...
- Existing Supermarkets. ...
- Booming Real estate prices. ...
- Lack of Supply Chain Management System. ...
- Foreign Direct Investment (FDI) in Multi Brand Retail in India.
Walmart remains one of the leading marketplaces and e-commerce players in the USA as they continue to expand globally with international sellers in mind. We have some great news for international sellers interested in selling on the Walmart marketplace!
What is the sales of Walmart in India? ›
The company's revenue in FY22 grew 6.9% to Rs 5,349.98 crore as compared to Rs 5,004.88 crore for the financial year ended on March 31, 2021. Its total income also went up 6.40% to Rs 5,361.72 crore for the financial year that ended on March 31, 2022.
Why Flipkart is successful in India? ›The platform started selling a variety of other products like music, mobile phones, as well as movies. With e-commerce gradually revolutionizing the world of retail and garnering its momentum in India, Flipkart expanded at a rapid pace steadily supplementing various new item categories in its collection.
Why Flipkart is popular in India? ›Lowest cost of doing business: Flipkart's online marketplace allows you to reap the benefits of sales without limitations since your cost of doing business on Flipkart is lower than other e-commerce portals. Whether you are a manufacturer, a vendor, or a supplier, you can become a top seller with minimal investment!
What is the purpose of Flipkart? ›Flipkart is an online B2C shopping portal, which provides shopping opportunities to Indian consumers. It allows the vendors to sell their ready-to-sell products by giving appealing discounts or sales to its consumers who wish to buy them.
Why was Walmart opposed in India? ›He said Walmart would indulge in predatory pricing, deep discounting and thus eliminate competition. Referring to how the BJP had earlier opposed Walmart's entry into multi-brand retail, the CAIT general secretary told Newsclick, “We want to remind the government to stick to its promise and the electoral manifesto.”
Can you buy wholesale from Walmart? ›Walmart Liquidation Auctions allows resellers to bid on excess inventory, store returns, and refurbished bulk lots directly from Walmart. Lots range in size from single pallets up to truckloads of excess inventory, and typically sell at a fraction of retail MSRP.
Who owns the other 50% of Walmart? ›The Walton family is the largest shareholder of Walmart, holding 50% of the company's shares. The Walton family acquired such high ownership of the company because they are the descendants of Sam Walton, who founded the company. The family received a majority of the shares via inheritance and made additional purchases.
How many suppliers does Walmart have? ›Supplier Inclusion
Our U.S. businesses sourced more than $13 billion in goods and services from approximately 2,400 diverse suppliers in FY2023.
CEO Doug McMillon reinforced Walmart's continued commitment to building an ecosystem of suppliers and partners in India, including micro-, small- and medium-sized enterprises (MSMEs), to meet the company's goal of sourcing $10 billion of India-made goods each year by 2027.
How is work culture in Walmart India? ›Good work culture. Everyone is supportive in my team. Good benefits for employees in terma of remuneration and employee policy is really good. Lot of free time like to stabilize your personal work.
Who is the top management of Walmart India? ›
- Ashok Upadhya. Senior Director - Legal, Ethics and Compliance. KNOW MORE.
- Bala PR. Senior Director - Platforms - Infrastructure and Operation. KNOW MORE.
- Balu Chaturvedula. Vice President - Engineering - Item and Inventory. KNOW MORE.
- Emma Jindal. Senior Director - Finance. KNOW MORE.
Walmart readies another $2.5 billion investment in India's e-commerce and payments. Walmart is preparing to spend over $2.5 billion in India as the retailer doubles down on the opportunities it sees in India's e-commerce and payments markets even as the firm contends with rising costs amid the market downturns.
What is Walmart's strategic plan? ›Walmart's strategy aims for technologies, innovation, and acquisitions to be the best retailer. The company has been utilizing the latest technologies and startups to make the customer experience better. Further, doing in-house innovation to stand out in the market and then using patents to protect its innovation.
What is Flipkart in India? ›Flipkart was founded in October 2007 by Sachin Bansal and Binny Bansal. It is one of India's leading E-commerce marketplaces and is headquartered in Bengaluru. The company initially started as an online bookstore. Later, it also started selling other items such as movies and mobile phones.
What is Walmart in India associated with? ›The company operates under the name Walmart in the United States and Canada, as Walmart de México y Centroamérica in Mexico and Central America, and as Flipkart Wholesale in India. It has wholly owned operations in Chile, Canada, and South Africa.
Why did Walmart go to India? ›The Indian government does not allow foreign multi-brand giants like Walmart to open front-end stores in the country on their own. That is why the American retailer had entered into a joint venture with telecom major Bharti Enterprises in 2007 to create Bharti-Walmart.
Does Walmart have a marketing strategy? ›The store uses phrases like "Save money, live better," "lowest price store," "worry-free fresh," and "everyday low pricing" to get the consumer excited. Walmart uses many different ways to advertise, such as commercials on TV, billboards, social media, and eCommerce websites.
What is Walmart's strategy What is the basis on which Walmart builds its competitive advantage? ›Satisfying Customers through Providing Best Customer Services. Walmart ensures that not only the customer gets the goods in low prices but also the best customer services.
What is Walmart's strategic problem? ›Walmart encounters several problems that include stiff competition, negative reputation, constraints in business acquisitions and joint ventures, and stringent cultural values in foreign markets (Kneer 25). There is stiff competition from other retail stores that have adapted a low-price strategy.
Does Walmart do business in India? ›With a long history in India, the company continues to build out a holistic ecosystem that includes a wholesale cash-and-carry business, eCommerce platforms, a payments and financial services platform, as well as logistics and supply chain capabilities.
How would Walmart's business in America be different from its Indian venture? ›
I. The business is America is mostly brick and mortar while it is online in nature in India. II. Walmart owns about 88% of the market share in America but hardly any in the Indian market.