Walmart Inc. is in talks with one of India’s largest conglomerates, Tata Group, to purchase a large stake in their proposed ‘super app’ for an estimated sum of US $ 20-25 billion, according to a report by Mint news.
The app is being created to offer a wide range of products in the retail space.
According to the ongoing discussions, the app could be launched as a joint venture between Tata and Walmart, leveraging the synergies between Tata’s e-commerce business and Flipkart, Walmart’s e-commerce entity in India.
If the deal goes through, it will set the record for the country’s largest deal in the retail space, surpassing the US $ 16 billion investment of Walmart in Flipkart in 2018 for 66 per cent stake.
The super app proposes to bring all of Tata’s consumer businesses under one channel including healthcare, food and grocery, insurance, financial services, electronics, lifestyle, jewellery and watch brand Titan and fashion retail arm Trent as well as Flipkart’s offerings from Walmart.
Separately, Tata is supposed to be approaching other potential investors for a stake in the digital platform, as per Bloomberg.
The super app is estimated to have a valuation of US $ 50-60 billion and is slated for a December or January launch. Goldman Sachs has been reportedly appointed as the official investment banker for the proposed transaction.
Compared with Jio Platforms or Amazon, Tata Group has the largest franchise of its own branded products that are sold to retail customers.
Tata Cliq, StarQuik, Tata Sky and Croma are Tata Group’s e-commerce platforms for selling various retail products, while Tata Consumer Products sell condiments and essentials.
The list for Tata’s consumer-facing businesses is quite long and an app to bring them together will provide a holistic experience to the consumer.
