Walmart in talks with Tata Group to invest $25 billion in 'super app'
Walmart Corporation is in talks with Tata Group for an investment of up to $25 billion in the salt-to-software conglomerate's new "super app", according to news reports.
Walmart Corporation is in talks with Tata Group for an investment of up to $25 billion in the salt-to-software conglomerate’s new “super app”, according to a report by Reuters.
Ongoing discussions between the two companies revealed that the ‘super app’ might be launched as a joint venture between Tata and Walmart, leveraging on the synergies between Tata’s e-commerce business and Flipkart, Walmart’s e-commerce unit, according to the report.
This development comes after Reliance Industries, headed by Mukesh Ambani, received investments adding up to more than $20 billion from firms including Facebook, Google, KKR & Co, and Silver Lake Partners by selling stakes in its digital business Jio Platforms.
According to Bloomberg News, Tata Group too is in discussions with potential investors for stakes in its new digital platform.
Walmart’s investment could touch $20 billion to $25 billion eventually for a large stake in the proposed ‘super app’ that will be hosted under a Tata Sons unit, according to Reuters.
The super app, which is scheduled to be launched in India in December or January 2021, will bring together Tata’s consumer business under one channel, offering a wide range of products in the retail space, according to the Reuters report.
Tata’s consumer businesses currently include watch and jewellery brand Titan and fashion retail chain Trent.
If Walmart goes ahead with its investment, it will exceed its investment in Flipkart, for which it paid $16 billion for a 66 per cent share.
According to reports in Mint, Walmart has hired Goldman Sachs as the banker for this proposed deal.
The Federal could not verify the news independently.