Leveraging the Strong Wholesale Capabilities
Popular Indian E-commerce platform Flipkart recently announced the acquisition of 100 percent interest in Walmart to leverage the strong wholesale capabilities of the company. Flipkart also launched Flipkart Wholesale, a new digital marketplace designed to help transform the kirana retail ecosystem in India. Flipkart Wholesale will launch its operations in August 2020 and will pilot services for the grocery and fashion categories. This announcement marks the consolidation of American retail giant Walmart’s business in India which controls Flipkart.
Walmart India operates the Best Price cash-and-carry business which currently supports more than 1,5 million members, including kiranas, horecas, and other MSMEs, and has a long-standing supplier diversity and development programs. Sameer Aggarwal, CEO at Walmart India will remain with the company to ensure a smooth transition, after which he will move to another role within Walmart. “For over a decade, we’ve been committed to India’s prosperity by serving kiranas and MSMEs, supporting smallholding farmers, and building global sourcing and technology hubs throughout the country,” said Judith McKenna, President, and CEO, Walmart International.
Benefitting the Kiranas and MSMEs
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. Additionally, 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. “The acquisition of Walmart India adds a strong talent pool with deep expertise in the wholesale business that will strengthen our positions to address the needs of kiranas and MSMEs uniquely,” said Kalyan Krishnamurthy, CEO, Flipkart Group. “With this development, the Flipkart Group will further build upon the synergies across its businesses to drive better value and choice for end-consumers and businesses alike,” he further added.
