Walmart Eyeing To Invest USD 25 Billion In Upcoming Super App From Tata
United States (US) retailer Walmart Inc. is in talks with the Tata group for buying a large stake in the salt-to-software conglomerate's upcoming super application called Super App. As per reports, Walmart will invest almost USD 25 billion in the application.
According to reports, Tata and Walmart would run Super App, an online retail business platform, jointly. Both the companies will launch the app, which will permit leveraging on the synergies between Tata's interests in e-commerce business and Walmart's e-commerce unit Flipkart. Some reports say that the proposed alliance between these companies can rope more foreign investors.
According to Mint, Walmart has also appointed Goldman Sachs as the investment banker for transactions, but there is no response given to Reuters from Walmart, Goldman Sachs, and Tata Sons.
The Super App will be launched in India in December 2020 or January 2021, and will bring all consumer businesses of Tata under one roof. The app will offer services such as healthcare, food and grocery ordering, fashion, electronics, bill payment services, education fee payments, insurance, and financial services.
The partnership will likely prove beneficial for both the companies. For Tata, this partnership will help the company to compete with Reliance Jio and Amazon. The partnership will also give Tata global recognition with the help of Walmart's name. From Walmart's point of view, the partnership will give a strong backing to its e-commerce platform.
Currently, Tata's consumer businesses include fashion products such as watches and jewellery, food, and beverage items such as tea, coffee, salt, lentils, spices, and packed food items.
In Indian cities such as Delhi, Mumbai, Kolkata, Bangalore, and more, Tata runs many a retail outlet called Westside for dealing in fashion products.
The news has come out at a time when Reliance Industries, owned by Mukesh Ambani, has attracted investors such as Google, Facebook, KKR & Co, and Silver Lake Partners by selling its stake in Jio.