Flipkart Group has just left everyone astonished by its latest move by acquiring 100 per cent stakes in Walmart India Private Limited, which operates the Best Price cash-and-carry business. According to the official report, the company has also launched the Flipkart Wholesale, which is a new digital marketplace aiming to help the Kirana retail ecosystem of India.
The report suggests that the company will start operations of the Flipkart Wholesale in August. This new business will serve the products in the grocery and fashion sector. Adarsh Menon will head the entire business vertical. However, Walmart India CEO will remain with the company to monitor the workflow.
This is a clever step from the Indian e-commerce giant to expand its footprints in the food and grocery segment. This will also help the company to strengthen its supply chain across the country.
“With the launch of Flipkart Wholesale, we will now extend our capabilities across technology, logistics and finance to small businesses across the country. The acquisition of Walmart India adds a strong talent pool with deep expertise in the wholesale business that will strengthen our position to address the needs of Kiranas and MSMEs uniquely. With this development, the Flipkart Group will further build upon the synergies across its businesses to drive greater value and choice for end-consumers and businesses alike,” said Kalyan Krishnamurthy, Chief Executive Officer, Flipkart Group.
Flipkart claims that this expansion will help local Kirana retail and MSMEs ecosystem. Flipkart will also provide easy credit option to Kiranas and MSMEs. The company will also bring different opportunities for new income generation and help the retailer to scale up the profitability and cover the losses occurred by the COVID-19 pandemic.
Flipkart Wholesale will allow unorganized Kirana sector and small shops to place their orders directly from the online platform. The online platform will use the supply chain of Flipkart to small shops and Kirana retailers. Do note that Best Price is currently supporting more the 1.5 million members including MSMEs, catering industry, and kiranas. This help Flipkart Group to grow further.
Thousands of kiranas have already partnered with Flipkart to enhance their business and income streams. I am excited to be part of this new initiative that allows us to expand opportunities for growth for them and bring further prosperity to their lives. We will leverage the synergies between Flipkart and Walmart India as we stay focused on transforming the wholesale experience for kiranas and MSMEs,” said Adarsh Menon, Senior Vice President and Head – Flipkart Wholesale.