Flipkart acquire's Walmart's Best Price stores in India to launch Flipkart Wholesale

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Flipkart announced that it will acquire 100% of the Best Price cash-and-carry business that was operated by Wal-Mart India Private Limited. The current 28 stores as well as the e-commerce channels will remain operational, servicing their 1.5+ million members.

However, this will lead to the launch of Flipkart Wholesale, a new digital marketplace aimed at kirana stores (small mom-and-pop shops) as well as Micro, Small and Medium Enterprises (MSME).

The pilot run of Wholesale will begin next month and will focus on the grocery and fashion categories. Going forward, the goal is to help kiranas and other small businesses by “leveraging cutting-edge and locally developed technology”.

The businesses will have access to a wide selection of products, supplied by India's top brands, local manufacturers and sellers who have partnered with Flipkart Wholesale. The partners themselves will benefit from Wholesale's wide distribution network.

The store owners will be given access to easy credit options and will be supported by various Flipkart initiatives to help them survive the difficulties of the COVID19-affected market and to grow in the future.

Flipkart Wholesale will be headed by Flipkart veteran Adarsh Menon. CEO of Walmart India Sameer Aggarwal will remain on board to help smooth the transition before heading off to another assignment inside Walmart.

Note that in August 2018 Walmart acquired a controlling 77% stake in Flipkart for USD 16 billion, so the US retail giant is still heavily involved with the Best Price stores and the new Wholesale operation.

“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,” said Judith McKenna, President and CEO of Walmart International.

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