Walmart may join Tata’s ‘Super App’ in India with $25 billion deal

By Backend Office, Desk Reporter
Walmart
Representational Image

The US retail giant Walmart is in talks with Tata Group, the Indian multinational conglomerate, for a huge share worth $25 billion in the latter’s proposed retail platform ‘super app’.

According to reports, Walmart may invest up to $20-25 billion in the Indian salt-to-software conglomerate’s super app platform. The app may be launched as a partnership venture between Tata and Walmart for strengthening the eCommerce businesses of both companies. Walmart owns Flipkart, the eCommerce platform founded in India.

If the deal becomes successful, it will be the largest investment to take place in the retail space of India and will overcome Walmart’s own deal of a 66 percent share purchase in Flipkart for $16 billion in May 2018.

The partnership news arrives just months after Mukesh Ambani owned Reliance Industries Ltd, raised over $20 billion funds from investors including the tech giant Facebook, Alphabet’s Google, KKR & Co and Silver Lake Partners for stakes in its digital business – Jio Platforms.

The retail app is planned to be launched in the country by December or January and it aims to pool different consumer services offered by Tata Group including healthcare, food and grocery, fashion and lifestyle, insurance and finance among many others on a unified platform.

“Walmart is keen to get a strong brand backing to its e-commerce business, while Tata group wants a global name and an established player in the online space to boost sales of products currently sold through Tata group’s retail subsidiaries and online platforms to be able to compete against Reliance Industries’ Jio Platforms and Amazon,” a person related to deal said.

According to local media reports, Walmart has hired Goldman Sachs, the global investment management firm as its adviser for this deal.

YOU MAY LIKE