Flipkart buys parent Walmart's Indian wholesale business | HT Tech

Flipkart buys parent Walmart's Indian wholesale business

The deal will allow Flipkart to launch a digital marketplace called Flipkart Wholesale next month.

By:REUTERS
| Updated on: Jul 23 2020, 13:10 IST
The logo of India's e-commerce firm Flipkart is seen in this illustration picture.
The logo of India's e-commerce firm Flipkart is seen in this illustration picture. (REUTERS)

Flipkart said on Thursday it had acquired parent Walmart Inc's local cash-and-carry business, as the e-commerce firm strengthens its wholesale offerings to compete better with Amazon.com Inc.

The deal will allow Flipkart to launch a digital marketplace called Flipkart Wholesale next month, the Bengaluru-headquartered firm said, without disclosing any financial details of the deal.

You may be interested in

MobilesTablets Laptops
Apple iPhone 15 Pro Max
  • Black Titanium
  • 8 GB RAM
  • 256 GB Storage
28% OFF
Samsung Galaxy S23 Ultra 5G
  • Green
  • 12 GB RAM
  • 256 GB Storage
Google Pixel 8 Pro
  • Obsidian
  • 12 GB RAM
  • 128 GB Storage
Apple iPhone 15 Plus
  • Black
  • 6 GB RAM
  • 128 GB Storage

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.

Also read
Looking for a smartphone? To check mobile finder click here.

The brand has 28 wholesale stores, two fulfillment centers and more than 1.5 million members, largely comprising mom-and-pop stores, but Walmart has not been able to make money from this business.

The Flipkart deal, which local daily Economic Times had said was in the offing in January, comes as e-commerce players including Amazon look to woo India's mom-and-pop stores that are considered the backbone of the economy.

Flipkart also faces competition from local online grocery upstart JioMart, backed by billionaire Mukesh Ambani-led Reliance Industries, whose digital arm has raised around $20 billion.

India does not allow foreign investors to control and market their own inventory on their e-commerce platforms, which is seen as giving JioMart and other local players an edge in a key growth market for e-commerce.

Walmart India employees will join the Flipkart Group as part of the deal, Flipkart said.

Catch all the Latest Tech News, Mobile News, Laptop News, Gaming news, Wearables News , How To News, also keep up with us on Whatsapp channel,Twitter, Facebook, Google News, and Instagram. For our latest videos, subscribe to our YouTube channel.

First Published Date: 23 Jul, 13:10 IST
NEXT ARTICLE BEGINS