Flipkart has announced the launch of Flipkart Wholesale, a digital marketplace catering to local kirana stores and MSMEs (Micro, Small, and Medium Enterprises). The e-commerce company has also announced that it has acquired a 100-percent stake in Walmart India, in what could be a move to compete with Amazon and JioMart.
Walmart India had been running the Best Price cash-and-carry business in the country. Flipkart said that the Best Price brand will continue to serve its over 1.5 million members through its network of 28 stores and e-commerce operations. Flipkart Wholesale will launch in August and will initially offer services under the grocery and fashion categories. The new brand will be headed by Senior Vice President Adarsh Menon. Sameer Aggarwal, Chief Executive Officer at Walmart India, will continue to remain with the company to ensure a smooth transition.
“With the launch of Flipkart Wholesale, we will now extend our capabilities across technology, logistics and finance to small businesses across the country,” Flipkart Group Chief Executive Officer Kalyan Krishnamurthy said.
“For over a decade, we’ve been committed to India’s prosperity by serving kiranas and MSMEs, supporting smallholder farmers and building global sourcing and technology hubs throughout the country. Today marks the next big step as Walmart India’s pioneering cash-and-carry legacy meets Flipkart’s culture of innovation in the launch of Flipkart Wholesale," said Judith McKenna, President and Chief Executive Officer, Walmart International.
The announcement comes just a few days after Flipkart raised an additional $1.2 billion (Rs 8,980 crores approx) in a fresh funding round led by Walmart. Back in May 2019 Walmart had acquired 77 percent controlling stake in Flipkart at $16 billion.