A $25 billion deal looming as Walmart seeks to buy stake in Tata’s consumer biz channel, according to Live Mint. The super app, likely to be launched in December-January in India, will create digital services, offering a wide range of products in retail space.

  • Super app could be launched as joint venture by  Walmart and Tata
  • Deal will build synergies between Tata’s e-commerce business and Flipkart
  • Super app could include Flipkart’s offerings from Walmart, Tata’s entire retail product franchise, and a platform for retail customers.
  • Flipkart could be powered by Tata. 
  • More foreign investors likely to be involved
  • Goldman Sachs appointed by Walmart as the investment banker for the proposed transaction
  • Super app valuation estimated to be about $ 50-60 billion
  • Super app will bring Tata’s healthcare, food and grocery ordering, financial and insurance services, and others under one channel. 
  • Walmart keen to strengthen brand in e-commerce while Tata wants a global name in online space

Walmart-Tata deal will be the country’s largest in the retail space, above 2018’s Walmart $16 million 66% stake in Flipkart. WMT: NYSE is up 0.34%, TATA is down 0.68%