- Walmart has switched to its own acquired e-commerce site, Flipkart, after it was unable to find a buyer for its wholesale business.
- Flipkart is expected to buy a stake in cash and carry Business from its parent company Walmart according to an ET article citing sources. This move came after the talks of the Tata group with Walmart’s loss-making Wholesale company went nowhere.
Walmart has switched to its own acquired e-commerce site, Flipkart, after it was unable to find a buyer for its wholesale business. Flipkart is expected to buy a stake in cash and carry Business from its parent company Walmart according to an ET article citing sources. This move came after the talks of the Tata group with Walmart’s loss-making Wholesale company went nowhere.
Flipkart has tried to expand its presence in the online food and grocery market, and this acquisition of Walmart’s B2B sector could help meet the demand of unorganized segments in India. Flipkart is looking for the reverse acquisition of the B2B market which will operate in the B2B sector as its subsidiary. Once it complies with all regulatory requirements, the program would be put into motion.
Walmart India currently operates 28 wholesale best-price stores across India. Through these stores, Flipkart focuses on providing merchandise to India’s largely unorganized segments of Kirana and small shops.
Through sharing Walmart Warehouses, this online B2B enterprise will more effectively pay for the products directly to these suppliers.
Earlier, Flipkart took steps to ensure the success of this online food delivery model which includes Walmart and Flipkart’s strategic investment in Ninjacart. Ninjacart is a supply chain startup that can directly amplify the supply of fresh food from farmers to the company. It also took steps to improve delivery capabilities to hyperlocal Kirana stores by investing in Shadowfox, a network of last-mile B2B logistics providing tech-enabled delivery for e-commerce, restaurants, FMCG, pharmaceutical and online & offline retailers.
At the beginning of January, Walmart India made workforce restructuring by laying off more than 50 executives to concentrate on its omnichannel projects, as Krish Iyer, Walmart India’s president, and CEO, said. In India, Walmart is not doing well which he believed is the result of making further growth investment. The wholesale unit of the company generated revenue of Rs 4,065 crore but the real picture is shown by losses that rise to 171,68 crores compared to last year.
