Flipkart Takes on JioMart, Acquires WalMart India to Launch Flipkart Wholesale for Groceries and Fashion

Flipkart has announced that the company has acquired 100% interest in WalMart India Private Limited, to launch Flipkart Wholesale, a new digital marketplace that aims at transforming the kirana retail ecosystem in India by leveraging cutting-edge and locally developed technology. This announcement comes a week after JioMart formally made its debut in Reliance Industries’ 43rd Annual General Meeting.

“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,” said a statement from Flipkart.

Flipkart Wholesale will launch its operations next month, and will initially offer services for the grocery and fashion categories. The venture will be headed by Flipkart veteran Adarsh Menon. 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, said a statement from the company.

“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,” said Sameer Aggarwal, chief executive officer, Walmart India.

Flipkart says that top Indian brands, local manufacturers and sellers have already partnered with the wholesale venture to ensure the availability of an exhaustive range of products and merchandise for kiranas and MSMEs. “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,” said Adarsh Menon, senior vice president and head, Flipkart Wholesale.

JioMart also operates on a similar online-to-offline model. Reliance Retail’s New Commerce platform is also being built in partnership with millions of small merchants and Kirana shops to empower them to better serve the needs of Indian consumers. WhatsApp and Reliance Industries are working closely to ensure that consumers are able to access the nearest Kiranas who can provide products and services to their homes by transacting with JioMart using WhatsApp.

“With JioMart, kirana stores will no longer be held back by limited product range, space, or delivery challenges. The partnership with JioMart can potentially help kirana stores grow business and earnings,” said Isha Ambani at RIL’s 43rd AGM.