Bangalore:
Walmart Inc is in talks with the Tata Group for an investment of up to $ 25 billion in the salt-to-software conglomerate’s new “super app”, the Mint newspaper reported Tuesday, citing people familiar with the matter.
Based on ongoing discussions between the two companies, the super app could be launched as a joint venture between Tata and Walmart, taking advantage of synergies between Tata’s e-commerce business and Flipkart, Walmart’s e-commerce unit, according to the report.
The news comes as Reliance Industries, controlled by Asia’s richest man Mukesh Ambani, raised more than $ 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 that the Tata Group is in talks with potential investors about stakes in its new digital platform.
Walmart’s investment could eventually reach $ 20 billion to $ 25 billion from a large stake in the proposed super app that will be housed under a Tata Sons unit, according to the Mint report.
The super app, which is scheduled to launch in India in December or January, will unite Tata’s consumer business into a channel that offers a wide range of products in the retail space, Mint said.
Tata’s consumer businesses include watch and jewelry brand Titan and fashion retail chain Trent.
Shares of Tata Consultancy Services, Tata Motors and Tata Steel gained more than 1% each, with TCS being the main driver of the Nifty 50 index.
If the deal with Walmart goes through, it will exceed its investment in Flipkart, for which the US-based company paid $ 16 billion for a 66 percent stake.
Mint said Walmart had hired Goldman Sachs as a banker for the proposed deal. Tata Group, Walmart and Goldman Sachs did not immediately respond to Reuters requests for comment.
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