Walmart is in talks with Tata Group to pump in $20-25 billion in Tata Group's all-in-one app. Tata Group is aiming to up the ante in India's digital space and take on rivals such as Reliance Jio, Amazon and Flipkart. The group is planning to create a new digital platform and a super app to bring its wide range of offerings under one space. Tata Group is currently in talks with potential investors to pick up stakes in the online platform and Walmart could pick a large piece of the pie.
According to Livemint, Walmart is also in talks with Tata Group for a stake in its new platform. The proposed 'large' stake could see Walmart pumping in $20-25 billion, overtaking its 66% stake purchase of Flipkart for $16 billion in 2018. If this follows through then the super app could be a joint venture between Tata and Walmart.
Tata Sons is working with advisers to explore bringing in financial or strategic investors, including tech companies, as mentioned in a report in Bloomberg. Tata's platform would be a gateway to its consumer products that range from beverages and jewellery to resorts. The platform would offer food and grocery ordering, healthcare, financial services, fashion, lifestyle, electronics, bill payments, etc in one place.
Discussions are at an early stage and are yet to take a positive direction. Recently, Mukesh Ambani raised more than $20 billion from giants such as Facebook, Google, Intel for Reliance's Jio Platforms.
Tata Group already has its online presence with Tanishq jewellery stores, Titan watches, Star Bazaar supermarkets, joint venture with Starbucks, Taj hotels, Westside, Tata Cliq, Tata Sky, Croma, StarQuik -- all of which might be clubbed under the online platform. The group has the largest franchise of own-brands, as compared to Jio and Amazon.
The new platform is expected to be launched at the end of 2020 or early next year, as mentioned by the news agency.
Tata Sons Chairman N Chandrasekaran would be at the helm of the group's digitisation drive with Tata Digital's head Pratik Pal in charge of building this super app, stated the agency. Pal has also helped in the digital transformation of some of the biggest retailers in the world including Walmart, Tesco, Target, Best Buy, and Marks and Spencer.