Walmart in talks for $25 billion investment in Tata’s super app?

Walmart Inc is in talks with Tata Group for an investment of up to $25 billion. They are planning to invest the money in the Indian conglomerate’s new “super app”. The ‘super app’ aims to create a digital service offering a wide range of products in the retail space. The news was shared by sources to 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.

As reported by sources to Mint, “Tata group is in talks with Walmart for a deal entailing a strategic investment by Walmart in the super app platform business. The Walmart investment could touch $20-25 billion eventually for a large stake in the proposed super app to be hosted under a Tata Sons subsidiary.”

Sources further added, “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.”

As per talks, the platform being considered for launch in December 2020 or January 2021 in India. Reportedly it could be a joint venture between Tata and Walmart.

Walmart has roped in Goldman Sachs as an investment banker for the deal and the app valuation is estimated around $50-60 billion.

There has been no confirmation of the same from Goldman Sachs, Tata Sons, or Walmart. But if the deal comes through then it will be the country’s largest deal in the retail space ever.

Also Read: Flipkart acquires Walmart India, launches Flipkart Wholesale