New Delhi / Bangalore: Flipkart, the country’s leading e-commerce company, has now entered retail as well as wholesale business. On Thursday, the company announced to launch a new digital market ‘Flipkart Wholesale’ to enter the country’s $ 650 billion wholesale business market. The company will also operate Best Price by purchasing 100% of 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.
Walmart Investors invested $ 1.2 billion
The announcement was made by Flipkart at a time when the company recently raised $ 1.2 billion from a Walmart-led investor group. However, Flipkart has not disclosed the value of the acquisition deal of Walmart India.
B2B company to be Flipkart Wholesale
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 will focus on sustaining the lives of the country’s retail market and meeting 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 reasonable prices.
Adarsh Menon will have leadership
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 post till the acquisition is completed. After that, he will be given some other responsibility at Walmart itself. At the same time, around 3,500 other employees of Walmart India will join Flipkart.
Walmart bought Flipkart in 2018
Significantly, Walmart India, one of the largest retail trading companies in the world, is a wholly owned company of Walmart. Walmart invested $ 16 billion in 2018 to buy a 77 percent stake in Flipkart.
Be it grocery stores or apparel, all these products will be available at one place and customers will get an opportunity to choose from a wide range with attractive plans and incentives. Also, these goods will be supplied to customers through a reliable network which will increase margins.
Walmart’s ‘Best Price’ now has about 1.5 million people involved. This includes grocery and other MSMEs. Major Indian brands, local manufacturers and vendors have partnered with Flipkart Wholesale to make more products available for grocery and MSMEs.
Kalyan Krishnamurthy, Chief Executive Officer of Flipkart, said that the acquisition of Walmart India would benefit Flipkart from their deep understanding and experience of employees in the wholesale business. This will strengthen our position to meet the needs of grocery and MSMEs.
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