Flipkart group may acquire stake in its parent company Walmart to take over its Best Price cash and carry stores, according to news reports.
The Bengaluru-based startup is looking to expand its footprint in the B2B supply chain by reverse-acquiring stake in the US retail giant, the report said.
Walmart had acquired a 77 per cent stake in the Flipkart group y for $16 billion in 2018.
Flipkart group which currently manages Flipkart and Myntra will, however, fulfil all regulatory requirements of its Walmart deal and serve as a subsidiary group to the company.
Walmart’s currently loss-making business consists of 28 cash and carry stores across the country. Walmart India had previously laid off 56 employees across various levels including eight senior-level and 48 middle and lower-level employees as part of its strategic corporate restructuring according to previous reports.
Flipkart’s partnerships and acquisitions
According to an Inc42 report, Flipkart is currently piloting FarmerMart in Hyderabad, partnering up with WayCool products to ensure delivery of fresh fruits and vegetables from farm to local shops and modern retail stores.
Flipkart and Walmart had also recently made a strategic investment in the agri-tech start-up Ninjacart to strengthen its farm to stores delivery chain. Flipkart’s acquisitions also include the last mile delivery platform Shadowfax. Flipkart, in its official statement regarding the acquisition, had said that it would leverage the platform to reach out to the organised kirana stores and small shops to build its supply chain, Inc42 reported.
Flipkart may utilise Walmart’s warehouses to scale up the business according to the report. It is also in the process to pilot a B2B business similar to Amazon Prime’s grocery delivery platform and Reliance’s recently launched JioMart.
Amazon had also recently partnered up with Future Group to strengthen its hold in the e-commerce retail segment against JioMart.