Flipkart Group announces the launch of Flipkart Wholesale
aimed at transforming the kirana retail ecosystem
Acquires
a 100% interest in Walmart India, which operates the Best Price
cash-and-carry business to strengthen capabilities and
business-to-business service offering;
Will
leverage talent, strong technology backbone, deep merchandising
expertise and logistics infrastructure to accelerate growth and
prosperity for kiranas and MSMEs
The Flipkart Group, India’s homegrown e-commerce group, today announced the launch of Flipkart Wholesale, a new digital marketplace that will help transform the kirana retail ecosystem in India by leveraging cutting-edge and locally developed technology. As part of this launch, the Group also announced the acquisition of 100% interest in Wal-Mart India Private Limited, which operates the Best Price cash-and-carry business, to leverage the strong wholesale capabilities of the company and enable growth and prosperity for kiranas and MSMEs.
Kiranas
and MSMEs are central to India’s retail ecosystem and Flipkart
Wholesale will focus on meeting their needs by providing small
businesses a wide selection at significant value, powered by technology
to make their lives easier. Whether in grocery, general merchandise or
fashion, these businesses will have one-stop access to an extensive
selection of products with attractive schemes
and incentives, supplemented with data-driven recommendations for stock
selection, delivered through a fast and reliable network to drive
greater efficiencies and better margins.
In
addition, kiranas and MSMEs will benefit from access to easy credit
options and opportunities for new income generation through various
Flipkart initiatives, creating new ways to catalyse growth. These
opportunities are especially relevant at this time as kiranas and MSMEs
work towards achieving scale and profitability following the impact on
business due to the COVID-19 pandemic.
Flipkart
Wholesale will leverage Flipkart’s strong homegrown technology
capabilities, extensive leadership in the consumer e-commerce
segment, and a unique understanding of the industry in India. The
business will also utilise the Flipkart Group’s vast supply chain
infrastructure to reach kiranas and MSMEs across the country. Flipkart
Wholesale will draw on the merchandising experience of
the Walmart India team, its strong relationships with brands, deep DNA
of servicing kiranas and 12+ years of operating Best Price stores. One
of India’s largest cash-and-carry businesses, Best Price currently
supports more than 1.5 million members, including
kiranas, horecas and other MSMEs, and has long-standing supplier
diversity and development programs. Flipkart Wholesale will continue to
develop technology tools, and ecosystem partnerships to help Indian
commerce unlock its potential.
Top
Indian brands, local manufacturers and sellers have partnered with
Flipkart Wholesale to ensure the availability of an exhaustive
range of products and merchandise for kiranas and MSMEs. At the same
time, partners will benefit from broader reach across the country,
micro-market insights to enable effective inventory planning and new
product development, and cost-effective distribution.
Kalyan Krishnamurthy, Chief Executive Officer, Flipkart Group, said,
“As the e-commerce pioneer in India, the Flipkart Group has transformed
the shopping experience for millions of Indian consumers. 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.”
Judith McKenna, President and Chief Executive Officer, Walmart International,
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. By leveraging each other’s strengths and
unique expertise, this combined team will break new ground in their
shared mission to help Indian businesses grow and
succeed. We look forward to a bright future for Flipkart Wholesale.”
Flipkart
Wholesale will launch its operations in August 2020 and will pilot
services for the grocery and fashion categories. It will be
headed by Adarsh Menon, a veteran at Flipkart. Sameer Aggarwal, Chief
Executive Officer at Walmart India, will remain with the company to
ensure a smooth transition, after which time he will move to another
role within Walmart.
Adarsh Menon, Senior Vice President and Head - Flipkart Wholesale,
said, “Flipkart Wholesale will further deepen and build on Walmart
India and the Flipkart Group’s commitment to kiranas and MSMEs over the
last several years. 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.”
Sameer Aggarwal, Chief Executive Officer, Walmart India,
said,
“This move recognises the critical role that kiranas and MSMEs play
towards India’s economic prosperity and growth, and the coming together
of Walmart India with Flipkart Wholesale will provide an opportunity to
build upon the 12+ year legacy of the Best Price
brand serving kiranas across India.”
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