Flipkart Group may acquire Walmart’s cash & carry business

March 14, 2020 written by

According to sources, Flipkart Group which operates Flipkart and Myntra might acquire the B2B segment of Walmart and it will function as a subsidiary of the group. This acquisition of B2B business provides strength to Flipkart’s supply chain as it looks forward to expanding its footprint in the online food and grocery segment.

People aware of the development said that Flipkart’s B2B online business will also cater to the vastly unorganised kirana segment and these small shops will be able to order goods directly through this platform. According to them, Flipkart is also likely to share Walmart’s warehouses. The recent strategic investment in Ninjacart by both Walmart and Flipkart will help amplify the companies’ sourcing form farmers. Flipkart has also invested in Shadowfax, a B2B lastmile delivery platform that might help scale up its hyperlocal abilities to cater to kirana stores.

The sources familiar with the matter also mentioned that the plan will be compliant with all regulatory requirements as it will only serve as a subsidiary of the broader group.

“If the move goes through, it will create an efficient and asset-light model that can build on the synergy between all these organisations. This looks like a sure shot success story as Flipkart will be able to tap all segments of e-commerce and not only the urban market,” the source added.

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