- Flipkart Wholesale will launch its operations in August 20
- This new vertical will be headed by Adarsh Menon, Flipkart veteran. Sameer Aggarwal, Walmart India CEO
- Walmart acquire filpkart in $ 16 billion -2018
E-commerce major company Flipkart Group has acquired 100% stake of Walmart India Pvt Ltd that is wholesale business of walmart in India, which operates the Best Price cash-and-carry business, and has launched Flipkart Wholesale, a new digital marketplace.
Flipkart Wholesale will launch its operations in August and will pilot services for the grocery and fashion segment. The new business vertical 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.
Bengaluru-headquartered Flipkart– which was acquired by Walmart for $ 16 billion in 2018– will launch its wholesale unit next month with categories like fashion and grocery. This will pit the ecommerce giant against a slew of rivals from JioMart and Amazon B2B to business commerce enabler Udaan and German retail giant Metro Cash & Carry.
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, 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 catalyse growth. These opportunities are especially relevant at this time as kiranas and MSMEs work towards achieving scale and profitability following the impact on business due to the COVID-19 pandemic.
Flipkart Wholesale will leverage Flipkart’s strong homegrown technology capabilities, extensive leadership in the consumer e-commerce segment, and a unique understanding of the industry in India. The business will also utilise 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, deep DNA of servicing kiranas and 12+ years of operating Best Price stores. One of India’s largest cash-and-carry businesses, Best Price currently supports more than 1.5 million members, including kiranas, horecas and other MSMEs, and has long-standing supplier diversity and development programs. Flipkart Wholesale will continue to develop 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.
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 recognises the critical role that kiranas and MSMEs play towards India’s economic prosperity and growth, and the coming together of Walmart India with Flipkart Wholesale will provide an opportunity to build upon the 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.