United States based retailing giant Walmart Inc is reportedly currently negotiating for an investment of up to $25 billion that it wants to make in the new "super app" that is owned and operated by the Indian salt-to-software conglomerate Tata Group, claimed reports quoting sources with knowledge of the matter.
The two companies could jointly launch the super app as a joint venture between Tata and Walmart according to sources with knowledge of the current status of discussions ongoing between the two companies, claimed reports. The new app is expected to leverage and take advantage of the synergies between Tata's e-commerce business and the Indian e-commerce platform Flipkart, which is a e-commerce unit of Walmart, claimed reports.
This new move in the industry comes at a time when funds worth more than $20 billion was recently raised by Reliance Industries, owned and controlled by Asia's richest man Mukesh Ambani, from a host of investors including Facebook, Alphabet's Google, KKR & Co and Silver Lake Partners against stakes given to these companies in the Indian company’s digital business Jio Platforms.
There were multiple reports that reported on the Tata Group holding talks with potential investors for taking up stakes in Tata’s new digital platform.
According to the reports, a large stake in the proposed super app form Tata that will be hosted under a Tata Sons unit, could be taken up by Walmart and the ultimate investment by the retailing giant could be between an estimated $20 billion and $25 billion.
According to previous reports, Tata plans to launch its new super app in India sometime in December this tear or January next year and the new app will bring together Tata's consumer business under one channel. Now considering the hug range of businesses that the Tata Group is involved in and assuming that all or most of the businesses are included in the app, the users will be offered a wide range of products in the retail space, claimed the reports.
Watch and jewelry brand Titan and fashion retail chain Trent are part of the consumer businesses of the Tata Group.
If the deal with Tata goes through for the value that is being estimated, it would mark the highest investment ever by Walmart for a stake in another company and would surpass the investment of $16 billion that the retailer had made for a 66 per cent stake in the Indian retailing giant Flipkart.
Goldman Sachs has been hired by Walmart as the banker for the proposed deal, said the reports.
There were no comments on the reports available from the Tata Group, Walmart and Goldman Sachs.
(Source:wwww.ndtv.com)
The two companies could jointly launch the super app as a joint venture between Tata and Walmart according to sources with knowledge of the current status of discussions ongoing between the two companies, claimed reports. The new app is expected to leverage and take advantage of the synergies between Tata's e-commerce business and the Indian e-commerce platform Flipkart, which is a e-commerce unit of Walmart, claimed reports.
This new move in the industry comes at a time when funds worth more than $20 billion was recently raised by Reliance Industries, owned and controlled by Asia's richest man Mukesh Ambani, from a host of investors including Facebook, Alphabet's Google, KKR & Co and Silver Lake Partners against stakes given to these companies in the Indian company’s digital business Jio Platforms.
There were multiple reports that reported on the Tata Group holding talks with potential investors for taking up stakes in Tata’s new digital platform.
According to the reports, a large stake in the proposed super app form Tata that will be hosted under a Tata Sons unit, could be taken up by Walmart and the ultimate investment by the retailing giant could be between an estimated $20 billion and $25 billion.
According to previous reports, Tata plans to launch its new super app in India sometime in December this tear or January next year and the new app will bring together Tata's consumer business under one channel. Now considering the hug range of businesses that the Tata Group is involved in and assuming that all or most of the businesses are included in the app, the users will be offered a wide range of products in the retail space, claimed the reports.
Watch and jewelry brand Titan and fashion retail chain Trent are part of the consumer businesses of the Tata Group.
If the deal with Tata goes through for the value that is being estimated, it would mark the highest investment ever by Walmart for a stake in another company and would surpass the investment of $16 billion that the retailer had made for a 66 per cent stake in the Indian retailing giant Flipkart.
Goldman Sachs has been hired by Walmart as the banker for the proposed deal, said the reports.
There were no comments on the reports available from the Tata Group, Walmart and Goldman Sachs.
(Source:wwww.ndtv.com)
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