As per talks, the platform being considered for launch in December 2020 or January 2021 in India, could be a joint venture between Tata and Walmart
Walmart is in talks with Tata Group for a large share in the latter’s proposed retail ‘super app’ in a deal worth $25 billion.
The deal entails the US retail giant’s total eventual strategic investment in the super app platform to touch $20-25 billion, a source told Mint.
The business will likely be hosted under a Tata Sons subsidiary, where it along with Tata’s other retail channels Tata Cliq, StarQuik, Tata Sky and Croma would be merged into one.
Moneycontrol could not independently verify the report.
“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," the source added.
As per talks, the platform being considered for launch in December 2020 or January 2021 in India, could be a joint venture between Tata and Walmart, with option to rope in foreign investors.
Walmart has roped in Goldman Sachs as investment banker for the deal and the app valuation is estimated around $50-60 billion, another source said.
Goldman Sachs, Tata Sons and Walmart did not respond to queries, as per the report.If it happens, the deal would the largest in India’s retail sector. Walmart made its first foray in the country with Flipkart in 2018, where it bought 66 percent stake for $16 billion.