You are here: Home » Companies » News
Business Standard

Walmart in talks to invest $25 bn in Tata Group's 'super app': Report

According to ongoing discussions between the two companies, the super app could be launched as a joint venture between Tata and Walmart

Topics
Walmart | Walmart India | Tata group

Reuters 

walmart
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.

Inc is in talks with 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 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 reported is in discussions with potential investors about stakes in its new digital platform. 

The 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 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.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Tue, September 29 2020. 11:27 IST
RECOMMENDED FOR YOU
.