Walmart to discuss an investment in Tata’s “super app” worth $25 billion
On Tuesday, Walmart Inc (WMT.N) said that it is in talks with Tata Group for a potential investment worth $25 billion.
The Indian multinational conglomerate holding company said that Walmart’s investment would be used to fund Tata’s new “super app.”
Tata Group said that the app was scheduled to be launched in India in December 2019 or January 2020. It includes healthcare, grocery, insurance, fashion, and electronics
“Walmart is keen to get a strong brand backing its e-commerce business, while the Tata group wants a global name and an established player in the online space… to be able to compete against Reliance Industries’ Jio Platforms and Amazon,” Mint Newspaper reported on Tuesday.
Goldman Sachs (GS) would serve as the banker for the Walmart and Tata Group’s joint venture.
“Tata already has a good reputation for its products and Walmart’s advanced technology and experience in the space will help with better distribution,” Brandtrotter New Delhi’s Marketing and Brand Consultant Rajiv Frank said.
“There are still a lot of people in small-town India who don’t fully trust Amazon. Tata’s name will help (Walmart) with the trust factor,” he added.
Tata Consultancy Services’ (TCS.NS) shares went up by 2.6% on Tuesday.