Walmart is likely to invest $25 billion into Tata’s proposed retail ‘super app’.
The deal entails the US retail giant’s total eventual strategic investment in the super app platform to touch $20-25 billion, a source has told Mint.
“The super app may include Flipkart’s offerings from Walmart and the entire retail product franchise housed by the Tata group on one platform for retail customers. And on the other hand, Flipkart could get to be powered by Tata,” he added.
The business will be managed by a subsidiary along with Tata’s retail channels like Tata Cliq, StarQuik, Tata Sky and Croma.
The platform is probably going to launch in January 2021, by a joint venture between Tata and global retail giant, Walmart.
Walmart has appointed Goldman Sachs as investment banker for the dealing and the app valuation is estimated around $50-60 billion, another source has said.
In 2018, Walmart had bought 66% stake in Flipkart for $16 billion.