Flipkart Group on Thursday announced the launch of a new digital market ‘Flipkart Wholesale’ to enter the country’s $ 650 billion wholesale business market. The company has also purchased a 100 percent stake in Walmart India Private Limited.
Walmart India operates wholesale shops under the name ‘Best Price’ in the country. It currently has 28 stores across the country. The announcement was made by Flipkart at a time when the company recently raised $ 1.2 billion in investments from a Walmart-led group of investors. However, Flipkart has not disclosed the value of the acquisition deal for Walmart India.
Significantly, Walmart India is a wholly owned subsidiary of Walmart, one of the world’s largest retail trading companies. At the same time, Walmart invested $ 16 billion in 2018 to buy a 77 percent stake in Flipkart.
The company said in a statement that ‘Flipkart Wholesale’ will be a B2B (inter-business between companies) digital market. Flipkart will start its operations in August. The company said that it would focus on sustaining the lives of the country’s retail market and catering to the needs of small and medium enterprises (MSMEs). The company will provide the small business sector the opportunity to choose from a wide range of products at a reasonable price.
Flipkart Wholesale will be led by Adarsh Menon, a senior employee of the company. At the same time, Samir Aggarwal, Chief Executive Officer of Walmart India will continue in his position till the acquisition is completed. He will then be given some other responsibility at Walmart. At the same time, around 3,500 other employees of Walmart India will join Flipkart.