Walmart is likely to invest between $20-$25 Bn in Tata’s Super app

Walmart

The American multinational retail corporation Walmart Inc. is in discussion with the Indian conglomerate Tata Group for a potential investment between $20 and $25 Billion in the Tata’s super app.

As per the talks going on between the two behemoths, the super app could be released as a joint venture between Walmart and Tata, leveraging on the synergies between latter’s e-commerce business and former’s Flipkart, Mint reported on 29 Sep (Tuesday).

Tata’s super app is looking at creating a digital service behemoth, offering a broad range of products in the retail space.

The super app which is expected to be launched in the country (India) in either December or January, will bring Tata’s various consumer businesses under one umbrella offering a wide range of products in the retail space. Walmart has appointed Goldman Sachs as an investment banker for the proposed deal, Mint reported.

Meanwhile, Bloomberg also reported that Tata Group is in talks with potential investors about stakes in its proposed digital platform.

Walmart may invest up to $25 Billion in Tata group’s super app

The Walmart investment could touch up to $25 billion eventually for a large stake in the proposed ‘super app’ that will be released under a Tata Sons unit.

The news arrives as Mukesh Ambani’s Reliance Industries Ltd, raised over $20 bn from investors including Alphabet’s Google, Facebook, KKR & Co and Silver Lake Partners by selling stakes in its telecom business “Jio”.

Shares of TCS, Tata Steel and Tata Motors gained more than 1 percent each, with Tata Consultancy Services the top boost to the Nifty 50 index.

As per the report, Walmart is looking to get a strong player backing its e-com business, while Tata group also wants an established international player in the online space to boost sales of its products (which are currently sold through its retail subsidiaries and online platforms) to be able to compete against Amazon and Reliance’s Jio Platforms.

Tata’s super app may bring Tata group’s complete retail product franchise and Flipkart’s offerings from Walmart on one platform, the report said.

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