According to ongoing discussions between the two companies, the super app could be launched as a JV between Tata and Walmart, leveraging on the synergies of Tata’s e-commerce business and Flipkart, as per the report, cited by Reuters.
The news 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, another report said Tata Group is in discussions with potential investors about stakes in its new digital platform.
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, according to the media 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, it said.
Tata’s consumer businesses include watch and jewellery brand Titan and fashion retail chain Trent.
If the Walmart deal goes through, it will top its investment in Flipkart, for which the US-based firm paid $16 bn for a 66% stake.
It was reported Walmart had hired Goldman Sachs as the banker for the proposed deal. Tata Group, Walmart and Goldman Sachs did not respond immediately to Reuters requests for comment.