Flipkart acquires Walmart's Best Price stores in India.
                     Flipkart acquires 
Walmart's Best Price 
stores in India and 
launching Flipkart 
Wholesale
Introduction
• On Thursday, Flipkart announced that it has acquired 
Walmart India to support its wholesale market operations 
and has made plans to launch next month a new digital 
marketplace. 
Source: GSMArena
History
• Flipkart has acquired Walmart Inc.'s Indian operations, as its 
US parent consolidates its operations in this fast-growing 
retail market to compete with, among others, Reliance 
Industries Ltd and Amazon. 
Source: The Financial Express
Expectation
• Flipkart takes over from Walmart India Pvt. Ltd, which operates 
the cash-and-carry Best Price wholesale stores. It is expected 
to launch a digital marketplace, Flipkart Wholesale, which is in 
pilot mode, in August, to grow its business-to - business (B2B) 
vertical.
Source: Pixabay
Billion $ Deal
• The deal takes the entire portfolio of Walmart to India under 
the Flipkart brand, for $16 billion, two years after it purchased 
a majority stake in the homegrown e-tailer. The 28 Best Price 
stores will continue to run. 
Source: Pixabay
Collaboration
• In 2007 Walmart joined India in collaboration with Bharti 
Enterprises. Walmart has agreed to go ahead with its cash-and 
- carry stores after parting ways in 2013.
Source: The Financial Express
Operations
• Flipkart Wholesale will begin operations in the fashion segment, 
slowly growing to include products for grocery, home, large and small 
electronics. 
• The new vertical will be led by Adarsh Menon, a veteran of Flipkart, 
while Walmart India CEO Sameer Aggarwal will shift to another 
position within Walmart after the transition.
Source: YourStory
Kirana Segment
• Flipkart's new B2B or online wholesale company will cater for the mostly 
unorganized segment of kirana and smaller shops that can directly order 
products via this website. 
• Best Price currently serves more than 1.5 million members, including kirana 
stores, hotel and food service companies, and other medium and small 
businesses. 
Source: Apparel Resources
Revenue
• The gross revenue of Walmart's 28 Best Price stores for the year ended 31 
March 2019 was about 4,095 crore, while losses stood at about 171,68 crore, 
according to data from Tofler.
Source: Tofler
Competitors
• Walmart aims to expand the company by partnering rather than competing 
with traditional retailers. 
• Even JioMart seeks to develop the company by placing onboard kiranas as a 
model to expand. 
Source: Business Today
Conclusion
• Flipkart Group, along with a consortium of existing shareholders, said it is 
expected to receive a $1.2 billion fund infusion led by Walmart. Flipkart 's 
investment values in post-money valuation are at $24.9 billion, with funds 
projected to arrive in two tranches over the remainder of the fiscal year.
Source: The Economic Times