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    Walmart looking at up to $25 billion investment in Tata Group's super app

    Synopsis

    The super app, which is scheduled to be launched in India in December or January, will bring together Tata's consumer business under one channel offering a wide range of products in the retail space, Mint said. Tata's consumer businesses include watch and jewellery brand Titan and fashion retail chain Trent.

    Reuters
    If the Walmart deal goes through, it will top its investment in Flipkart, for which the U.S.-based company paid $16 billion for a 66% stake.
    BENGALURU: Walmart Inc is in talks with Tata Group for a potential investment of up to $25 billion in the Indian salt-to-software conglomerate's new "super app", the Mint newspaper reported on Tuesday, citing people familiar with the matter.

    According to ongoing discussions between the two companies, the super app could 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.

    The news comes as Reliance Industries Ltd, controlled by Asia's richest man Mukesh Ambani, raised over $20 billion from investors including Facebook, Alphabet's Google, KKR & Co and Silver Lake Partners by selling stakes in its digital business Jio Platforms.

    Separately, Bloomberg News reported Tata Group is in discussions with potential investors about stakes in its new digital platform.

    The Walmart 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 the Mint report.

    The super app, which is scheduled to be launched in India in December or January, will bring together Tata's consumer business under one channel offering a wide range of products in the retail space, Mint said.

    Tata's consumer businesses include watch and jewellery brand Titan and fashion retail chain Trent.

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

    If the Walmart deal goes through, it will top its investment in Flipkart, for which the U.S.-based company paid $16 billion for a 66% stake.

    Mint said Walmart had hired Goldman Sachs as the banker for the proposed deal. Tata Group, Walmart and Goldman Sachs did not immediately respond to Reuters requests for comment.
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    36 Comments on this Story

    Jagdeep Sharma24 days ago
    This is very good move by Tata. This will help give a fair competition to reliance retail business which was hurtling along to create a monopoly. But Tatas must keep in mind Atmanirbhar bharat philosophy while tying up with Walmart.
    WhoseMoneyIsIt25 days ago
    For indian consumers, if Tata actually get investment of that size, then market will have another player to compete against Amazon & Ambanis. And thats good news.
    Which brings main question :-) who advised waltons to invest in flipcart rather than partnering with some actual established business groups of India in first place. Faulty matchmaking algorithms introduces wrong johnys & candies. Certainly walnart can send a couple of trucks to get fresh green notes from Eccles Building if they are serious in doing business in india. But वो दूनीया की नंबर 1 family होने के बावजूद भी इतने अमीर नही है की india को सस्ता समझे. 25% of their औकात will be already in to just to get foothold in india with Tata now. Wrong people these guys do powwow with :-)
    Rajiva Ranjan25 days ago
    As citizens of this country our interest should be very high quality supply chain management with good quality standards, grading , cold and other high quality storage to be provided by these to big retail companies. We must bring in transparency to help farmers by providing data on production, trade, stocks, prices at al the 3.5 lakh CSCs. The traders association or APEDA must be encouraged to maintain data and put up in public domain by 5th of every month. The farmers, producers, traders and consumers with their inputs will ensure transparency and accuracy of data.
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