Tag: walmart

  • 10 Surprising & Interesting Facts About Walmart People Don’t Know

    Walmart is an American retail corporation that operates a large chain of discount superstores.
    Walmart stores sell everything from groceries to musical tools.

    As of 2021, Walmart has 10,526 stores and clubs in 24 nations, working under 48 unique names.

    Walmart is the world’s biggest industry with a net worth of US$548.743 billion.

    Read on to find out some mind-blowing facts about Walmart.

    Walmarts are literally everywhere
    Large Workforce at Walmart
    Walmart promotes eating healthy
    Walmart Provided Relief for Hurricane Katrina Victims
    Walmart was Unsuccessful in Germany
    Walmart Museum
    Walmart’s Private Satellite Network
    Walmart has more than 150 shipping centers
    Walmart stocks even before Storms
    Robots are a part of Walmarts’ task force
    FAQs

    Interesting facts about Walmart

    Walmarts are literally everywhere

    Walmart Logo
    Walmart Logo

    Walmarts are the most easily found convenience stores. Research says that 90% of the population in the United States lives within 10 miles of a Walmart store. The rest 10% of people can shop at Walmart online. And, by 2017, the organization noticed that 95% of U.S. shoppers purchased stuff at Walmart.

    Large Workforce at Walmart

    The organization reports that it employs 2.2 million co-workers around the world.
    That implies, if each Walmart worker moved to a similar area, the city would be about a similar size as Houston, Texas. If Walmart was a country, it would be the 42nd biggest economy on the planet!

    Walmart promotes eating healthy

    Walmart store- Great Value
    Walmart store- Great Value

    Walmart has its own store image that is called Great Value. In 2011, the firm started working intimately with Michelle Obama to present their new good dieting drive. They started doing this by ensuring to decrease sugar, undesirable fats, and sodium content in their pre-packaged food varieties. Likewise, they declared to reduce costs on vegetables and natural products.
    Another technique that the firm used to promote healthy dieting was decreasing the costs of entire grain food. They likewise encouraged their own providers to use more healthy ingredients and practices in food.
    They even planned their own seal that was to go on food sources that were “genuinely healthy”.

    Walmart Provided Relief for Hurricane Katrina Victims

    Walmart providing relief in Hurricane Katrina
    Walmart providing relief in Hurricane Katrina

    In 2005, Hurricane Katrina slammed into the South, killing many people and destroying a lot of property and infrastructure. The most severely affected town by this hurricane was New Orleans. The firm eventually donated around $20 million to relief efforts as well as 100,000 meals worth of food, 1500 trucks of commodities. The most fascinating aspect of Walmart’s response to the storm is that they were the first to provide relief to the victims. This was due to their intimate knowledge of local infrastructure and supply chains – which allowed them to deliver relief quickly and efficiently when Hurricane Katrina struck the Gulf Coast, Walmart opened make-shift stores, sent truckloads of supplies to our city, and activated associates on the ground to help those in need.

    Walmart was Unsuccessful in Germany

    Walmart’s status as a global retailer became prosperous in the 1990s. They have opened up more stores outside of the United States. For instance, their stores in China, the United Kingdom, and across South America have ended up becoming more successful than they initially expected.
    Despite this, they shut down many of their stores in Germany when the chain did not take off in the country which is the greatest economy in the entirety of Europe.
    At last, the American association’s refusal to agree to German qualities cost them around a billion dollars and hold on the German market.


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    Walmart Museum

    The Walmart Museum is situated in Walton’s 5 and 10 in Bentonville, Arkansas, the store bearing Walton’s name. The structure actually has its unique tiles on the roof and floor. Admission is free of charge. A wide variety of shows portraying the historical backdrop of Walmart are displayed in the Walmart Museum.

    Walmart’s Private Satellite Network

    Walmart created its private satellite network in 1987. Worth $24 million, the organization plans to keep an association between each Walmart store to its base camp in Bentonville. This made it the biggest private satellite organization made to date when it was launched on 20-Jul-2020.

    Walmart has more than 150 shipping centers

    Walmart has 150+ shipping centre. Walmart business action center points offer administrations for clubs, stores, and direct client deliveries.
    In addition, Walmart’s support place network handles the transportation of general products, dry food, and another category.

    Walmart’s present U.S. retail location and circulation network is enormous at $ 783 Million.


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    Walmart stocks even before Storms

    No item at Walmart is found full-time for around a year. The organization tracks its customers’ purchasing inclinations and changes according to their needs. Obviously, individuals purchase multiple times the measure of Pop-Tarts if an awful climate is coming in. Walmart stocks up surprisingly essentials before storms strike in area.

    Robots are a part of Walmarts’ task force

    Walmart Robots in Walmart Taskforce
    Walmart Robots in Walmart Taskforce

    Walmart is utilizing robots to finish assignments like washing floors, checking rack stock, and filtering for mistakes. “By next February, it hopes to have self-governing floor scrubbers in 1,860 of stores out of 4,700 US stores,”. The 350 Walmart stores will also be equipped with robots that will check rack stock.” Walmart, according to CNN, will be incorporating autonomous robots into its operations on a daily basis, the news source reported.

    FAQs

    What is Walmart known for?

    Walmart is an American global retailer selling a wide variety of merchandise at low prices.

    How many Walmart stores are there in the world?

    There are 10,526 stores in 24 different countries.

    Who is the founder of Walmart?

    Samuel Moore Walton was an American businessman and entrepreneur who founded the retail giant- Walmart.

    What is the slogan for Walmart?

    The walmart slogan is “Save Money. Live Better.”

  • Business Model of Walmart: Success Strategy of Multinational Retail Giant

    Walmart is a US-based multinational retail firm that owns and operates a network of superstores, grocers, and discount stores. It is the world’s largest company by revenue and has revenue of $559,200 and 2,300,000 employees all over the world. It is a family-owned and operated publicly traded company. The business is owned by the Walton family. In 2019, it was the biggest grocery store in the United States. ‌‌’Cost leadership’ is at the foundation of Walmart’s business model. When a corporation represents itself as the cheapest maker or provider of a certain goods or services in a competition, it is referred to as cost leadership. The approach is tough to implement since administration must continuously strive to reduce costs at all levels in order to stay in business.

    Walmart – Cost Leadership Strategy
    Walmart – Key Services
    Walmart – Success Strategy
    How Walmart makes money?
    Conclusion
    FAQs

    Walmart Business Model

    Walmart – Cost Leadership Strategy

    Walmart uses cost leadership strategy for its business. Let us know about cost leadership.

    What is Cost Leadership?

    A cost leadership strategy entails positioning a business’s products as the most affordable. This system has the ability to be quite successful. Nevertheless, it is extremely difficult to implement because it necessitates cutting expenses and transferring the benefits to consumers. One of the most prominent instances of an effective cost leadership strategy is Walmart.

    It’s a strategy for lowering expenses and producing the cheapest items in a marketplace or sector to obtain profit margins. Buyers are aware of the services accessible to them in today’s commercial world, which is quite complicated and complicated. Competitive pricing is one way for businesses to set themselves apart. Businesses with the lowest manufacturing costs can show the same level of quality of the product for a considerably lower price than their competitors.

    Walmart Cost Leadership Strategy

    Walmart is by far the most well-known cost leader, having employed a cost-leadership approach to becoming the world’s largest corporation. Walmart’s promotional taglines, such as “Always Low Prices” and “Save Money. Live Better,” signal to targeted users the company’s focus on cheaper products. Additionally, Walmart takes full advantage of its massive sales volumes to sell the products with razor-thin profitability. Walmart’s cost-cutting plan is bolstered by its value-chain strategy. One of the biggest distribution network achievements in business is Walmart’s inbound and outbound logistics.

    Walmart’s inbound logistics are guided by three core themes: use the lowest product line connections by operating directly with manufacturers; form strategic relations with suppliers for the longer run and focus on high bulk purchasing; while using cross docking to efficiently manage, which entails unpacking products from an inbound truck directly into the outbound truck without storing in between the process.

    Walmart Business Empire

    Walmart – Key Services

    Walmart is generally known as an all-in-one store. Walmart sells things in a wide range of categories. Walmart is known for selling groceries and clothing items. Electronics are available for purchase as well. Walmart sells music downloads, movies, books, and jewelry, among other things. The store sells infant products, and sports equipment in addition to daily furniture.


    Walmart | American Multinational Retail Company | Company Profile |
    Founded by Sam Walton in 1962, Walmart Inc. is the world’s largest retailer company by revenue. Know more about its business model, success story, etc


    Walmart – Success Strategy

    Walmart has formed a powerful and dedicated client base by living up to its objective and continually striving to deliver everyday low costs to its shoppers over the course of its 50-plus-year period. Buyers know they can expect inexpensive costs when they come into a Walmart. Following are some strategies that are used by Walmart to stay at the top:

    Management of the Supply Chain‌‌
    Walmart’s supply chain management approach has been improved, and the company is working to reduce expenses and operating costs even more. Walmart was one of the first corporations to interact directly with suppliers, thereby handing resource management over to the sellers. Variations in inventory flow can be balanced out by using “vendor managed inventory” (VMI), eliminating overabundance and overstocks.

    Walmart was among the first companies to indulge in inventory management technologies using a software system. Data like in-store point-of-sale, storage inventories, and real-time transactions were channeled into cloud computing under this system. Suppliers were given more information so they could know when to deliver extra products. Walmart can lower costs even more by constantly inventing and synchronizing each level of its distribution network.

    Increasing Negotiation and Reduced Costs‌‌
    Walmart’s massive size and economic output allow it to influence vendor engagement, lowering prices. Walmart accounts for up to 70% of revenue for several general merchandise companies. Such companies would not have been able to function without Walmart as a sponsor. It offers Walmart complete control over its pricing and practice guide.‌‌

    Walmart can potentially cut expenses by operating its own truck network and improving its transit system. Cross-docking is a warehousing method that Walmart has used. This system transfers goods from an incoming truck to an outgoing truck in real time. This allows things to be relocated swiftly without any need for costly warehousing. Walmart could transfer on profits to customers in the form of cheaper prices as a result of reduced product expenses and a more effective inventory control operation.

    Modern Business Strategy
    Walmart has maintained the same business model of “everyday cheap pricing” for about 50 years . Walmart is the largest retailer by volume and has locations all throughout the country. Walmart can appeal to a diverse range of consumers thanks to its four major types of outlets: bargain stores, superstores, Sam’s Clubs, and neighborhood markets.

    It has approximately 11,500 retail locations, and 90 percent of Americans are expected to reside around 15 min of a Walmart. Walmart’s client base is enormous; over 260 million people visit its retail shops and e-commerce platforms each week. With such a large consumer base, Walmart was able to generate $559 billion in sales in 2020.

    How Walmart makes money?

    Walmart makes money through supplying products and services straight to customers and businesses. Walmart makes money from the products it sells, like groceries, health and wellness products, electronics, clothing items and many other products. It also generates revenue from the services provided like VUDU streaming services, financial services, clinical services and health insurance services.

    Conclusion

    Walmart is a business giant and has always taken the right steps towards the company’s growth. With millions of employees and thousands of stores all over the globe, Walmart is becoming more and more accessible to customers. With the right strategies and buying the stock in bulk, it ensures cheap prices for the buyers and maintains its mantra of ‘Everyday Low Prices’.

    FAQs

    How does Walmart makes money?

    Walmart sells various products and services to the buyers at cheaper prices, thus creating a loyal customer base.

    Does Walmart own Dollar Tree?

    No, Walmart does not own Dollar Tree.

    Is Walmart available in India?

    Yes, there are 29 Best Price Wholesale stores in India which are owned and operated by Walmart.

    How many Walmart’s stores are there in the world?

    There are around 10,500 Walmart stores that operates under 48 banners in 24 countries and eCommerce websites.

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  • How Flipkart’s New Platform Shopsy will help Small Businesses and Individuals to be Resellers?

    Flipkart is not unknown to Indians. With the birth of Flipkart, eCommerce has been a household term for us.

    The Walmart-owned Indian eCommerce giant has been the trustworthy companion for millions of Indians till date since it was founded 14 years back in 2007. Flipkart has experienced incredible growth over the years.

    Along with keeping up with quality standards of products and services, the Indian startup stood strong against none other than Amazon, which is not an ordinary feat. Furthermore, along the years that Flipkart served the country, it not only increased its business on a large scale but also continued to provide both direct and indirect opportunities of employment for its users.

    On its way to offer employment opportunities for the people of the Indian subcontinent, Flipkart announced its latest app Shopsy.

    What is Shopsy?
    How will it Help Small Businesses, Entrepreneurs, and Individuals?
    Many Users Often Shy Away from Ecommerce Platforms, Why?
    How to use Shopsy?
    FAQ

    What is Shopsy?

    Shopsy, as announced by Flipkart, is launched as an app that will help tens of thousands of native entrepreneurs, businessmen, and other individuals to grow and further their businesses and enterprises.

    According to the Senior Vice President – Growth and Monetization of Flipkart, Prakash Sikaria, the launch of Shopsy as an app will help drive easy employment opportunities for the Indians that will further their “vision and provide additional earning opportunities for millions of enterprising Indians. Now, anyone from anywhere can start their online business with zero investment.”


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    How will Shopsy Help Small Businesses, Entrepreneurs, and Individuals?

    Flipkart offers a wide range of products, equaling almost 15 crore products from varying industries, which the web app displays its users from where they can choose to buy the ones they prefer.

    To date, Flipkart has only offered its users products and opportunities to be sellers but with Shopsy the app also aims to create resellers out of their users. Now, the wide range of products that Flipkart boasts of on its website, spanning across categories like fashion, beauty, electronics, mobiles, home essentials, etc., will also be available for the budding entrepreneurs and other individuals to resell them and add to their income.

    The people who will choose Shopsy would be able to share Flipkart’s catalogs with their prospects via any social media or messaging apps, place orders for their customers, and earn commissions for themselves. The amount or the percentage of commissions received will not be the same and depend on the products and the categories from which they are ordered.

    Shopsy will also be a great help for Flipkart and have unlimited opportunities to widen their user base and boost their business. People who are relatively new to the world of eCommerce or aren’t sure of buying things online will be acquainted with Flipkart. This will further grow their trust in the brand and eCommerce in general because the known thread will be their trusted point of contact, who will be a Flipkart user.

    This new app will not only benefit the people who already exhibit a strong network but will also be an enviable opportunity for those who only aspire to build a decent network. Yes, the latter can also weave their own network successfully with the daily transactions that they will depend upon once they sign in with this Flipkart app.

    Shopsy will be a great boon for all upcoming entrepreneurs and individuals because all of them will have equal access to the wide inventory, effective logistics management, and established delivery networks of the eCommerce giant, which they can use as their ladder to establishing a successful business. Gain credibility and acceleration will not be a problem to them this way and with this app.

    Shopsy Website
    Shopsy Website

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    Many Users Often Shy Away from Ecommerce Platforms, Why?

    Though online transactions have grown by leaps and bounds in the past couple of decades, many users still fail to muster enough courage to transact online on eCommerce websites mainly because of their ignorance and the lack of trust. Distributed commerce, however, has acted as a channel to solve these problems and has witnessed quite a growth in these recent years. Shopsy will further gear up the possibilities for the app and its users to grow.

    How to use Shopsy?

    Flipkart has grown its eCommerce expertise over the years and is now aiming to help legions of budding Indian entrepreneurs to make the best of the app. All the users who want to use Shopsy will have to first register on the app with their phone numbers in order to kickstart their entrepreneurial venture and can continue adding to the income and expanding their business leveraging the key resources of the platform.

    Conclusion

    With this new initiative, Flipkart aims to benefit over 25 million online entrepreneurs by 2023 through digital commerce. Shopsy will be a major boost to the company, its citizens, and the country, and will be a major step forward to eradicate the country’s long-standing problems of unemployment.

    Besides, with the post-pandemic woes that have ousted several and weakened the stable financial grounds of many individuals and businessmen, Shopsy has the potential to glow as a silver lining at the end of the dreadful pandemic.

    FAQ

    What is Shopsy?

    Shopsy is an e-commerce platform launched by Flipkart to help entrepreneurs grow their business through platforms like WhatsApp.

    Is Shopsy Free?

    Yes, Shopsy platform is free for small businesses and individuals but sellers on Shopsy will have to pay the usual marketplace fee.

  • Why Softbank is Investing 700 million in Flipkart after exiting the firm in 2018?

    SoftBank Vision Fund is a Japanese based company that had exited from its investments in Flipkart after selling them off to Walmart Inc during the year 2018. But the company has now held discussions in order to invest into the e-commerce giant, Flipkart. Let’s look at why SoftBank is trying to buy Flipkart again.

    Softbank Funding – Latest News
    Flipkart Plans for IPO in US
    Reason for SoftBank’s Investment in Flipkart
    Flipkart’s Investment
    FAQ

    Softbank Funding – Latest News

    SoftBank has held discussions with the e-commerce giant, Flipkart to invest an amount of around USD 600 – USD 700 million during the funding round. Certain sources have claimed that the funding which is being raised by Flipkart is much more larger which is expected to be around USD 2 billion.

    The funding rounds estimated to see the participation of a group of investors or wealth funds which include Canada’s CPPIB, Abu Dhabi’s ADQ as well as the existing investors of the company which includes GIC and Qatar Investment Authority.

    The sources have conveyed that the funding rounds would value the e-commerce giant to closely around USD 25 – USD 30 billion.

    Flipkart Plans for IPO in US

    Flipkart had plans to go for an Initial Public Offering in the United States and the investment from Soft Bank would lead the company to push aside its plans to go public. This would mean that the e-commerce giant would stay as a private company for longer than it was intended to.

    A person close to the developments has conveyed that the deal between SoftBank and Flipkart would be finalized up in the next few weeks of June 2021. As per earlier reports, the e-commerce giant had plans to go public during the year 2022.


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    Reason for SoftBank’s Investment in Flipkart

    If the deal to invest in Flipkart is finalized then it would be another big move from the Japanese based group, SoftBank in entering into the Indian e-commerce market. The company has already been part of the e-commerce market with huge cash investments.

    After the exit from the e-commerce firm Flipkart during the year 2018, the re-entry into the firm is at the right time when the large Indian groups such as TATA and Reliance have been entering into the market sector and is trying to catch the market share.

    Even the rival firm of Flipkart which is Amazon has increased its investment in the Indian market by more than USD 7 billion in diversified sectors which include retailing, online payments, food delivery, grocery delivery, etc.

    The investment from SoftBank will help the e-commerce giant to build an ecosystem in order to compete with the rivals such as Reliance, TATA and Amazon.

    Revenue growth of Flipkart
    Revenue growth of Flipkart

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    Flipkart’s Investment

    Flipkart under the leadership of Kalyan Krishnamurthy has grown significantly over the years. They have increased their investments and the acquisitions in order to bulk up their logistics and supply chain in order to increase the its brand and fashion portfolio.

    In the month of April 2021, the company had acquired Cleartrip in order to strengthen its presence in the hospitality sector. Flipkart had also acquired an 8% stake in the Aditya Birla Fashion and Retail Ltd and also a 27 % stake in the Arvind Fashions.

    Other recent investments of the company include a logistics startup and a supply chain startup. The company is also focusing to invest heavily into the online grocery platform as it has seen an increased demand due to the pandemic and the lockdown in the major cities.

    The company has announced that it has plans to build warehouses for scaling up its grocery business and hired employees for it. The Indian business of Flipkart is operated through multiple entities. The online business is run by Flipkart internet and Flipkart India.

    Conclusion

    The e-commerce giant has expected to raise funds from the Canada Pension Plan Investment Board and also from the existing investors. 76.9 % of the stake is owned by the Parent company Walmart INC. The other investors include UBS, GIC, Accel, Microsoft, Qatar Investment Authority, Tiger Global Management, Tencent, ESOP pool and the founder Binny Bansal.

    FAQ

    When did SoftBank Invest in Flipkart?

    SoftBank’s Vision Fund invested $2.5 billion in Flipkart in August 2017.

    When did Walmart invest in Flipkart?

    In 2018 Walmart bought a roughly 77% stake in Flipkart for $16 billion.

    Is Softbank investing in Flipkart again?

    Yes, Softbank is in talks with Flipkart to invest approximately $700 million in it.

  • Acquisitions of Indian Startups by its Competitor

    What do you mean by the term Acquisitions? On what metrics the company acquires other companies? Is acquiring other competitor companies legal? Which are some of the latest acquired companies? Interesting isn’t it?

    According to Investopedia, the definition of Acquisitions is as follows-

    An acquisition is when one company purchases most or all of another company’s shares to gain control of that company.

    Acquisitions, which are very common in business, may occur with the target company’s approval, or in spite of its disapproval. Some of the parameters needed to be checked before acquiring a company. These metrics should be followed before evaluating an acquisition- Financial value of the company, Asset value of the company, Possible resale value of the company, and its assets.

    Read this article to know more about the common questions related to startup acquisitions. We have listed down some of the latest and deal-breaking acquisitions in the Indian Startup Ecosystem.

    Top Indian Startup Acquisitions
    1. Walmart acquires Flipkart
    2. Snapdeal acquires FreeCharge
    3. Tata motors acquire Jaguar and Land Rover
    4. Flipkart acquires Myntra
    5. Ola acquires TaxiForSure
    6. Zomato acquires Urbanspoon
    7. MakeMyTrip acquires MyGola
    FAQ’s
    Conclusion

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    Top Indian Startup Acquisitions

    India, the 3rd largest startup hub in the world is home to many new startups. Every other day we hear about new startups coming up in India. With all these new startups coming up every other day, the competition increases. This leads to acquisitions. The strong prey on the weak or the potential competitor. Recently, the Walmart-Flipkart merger in mid-2018 is the first breakthrough in the minds of many. From a country’s M&As (mergers & acquisitions) viewpoint, this acquisition has been a milestone and still has an ecosystem impact. If the sale was the horse rider or the fact that the ecosystem was more M&A safeguarded, the overall fusions and acquisitions this year have decreased.

    As we approach the mid of 2021, there are sudden reports of potential acquisitions and exits in the Indian startup ecosystem. Some of India’s largest startups have made many acquisitions to grow their footprint, grab a larger market share or endure growing competition from competitors, including Tata Motors, Zomato, Snapdeal, Flipkart, and others.

    1. Walmart acquires Flipkart

    Flipkart and Walmart Logo
    Flipkart and Walmart Logo

    With the American retail giant investing 16 billion worth, Walmart‘s takeover of Flipkart is the first-ever in India. But this acquisition was not the country’s first major takeover we saw. Here is a list of some of India’s major fusions and acquisitions. In 2018, Walmart purchased Flipkart 77 percent for $16 billion. This makes it India’s largest acquisition.

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    2. Snapdeal acquires FreeCharge

    Snapdeal and FreeCharge Logo
    Snapdeal and FreeCharge Logo

    In April 2015, Snapdeal acquired the Freecharge smartphone recharge service. It was valued at $400 million for the cash plus equity deal and the largest takeover in Indian internet business history. The partnership brought in about approx. $1.1 billion in financing from Snapdeal, and $120 million from Freecharge in particular. Freecharge remained a separate company after the takeover, allowing Snapdeal to grow its digital trading ecosystem. Snapdeal has had several major acquisitions last year: In the center of this move, China’s giant Alibaba took an interest in Indian eCommerce in Snapdeal.

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    3. Tata motors acquire Jaguar and Land Rover

    Tata Motors, Jaguar and Land Rover Logo
    Tata Motors, Jaguar and Land Rover Logo

    As announced on March 26th, Tata Motors purchased the Ford Motor Company’s Jaguar Land Rover companies from the company for a net amount of $2.3 billion. In the Jaguar Land Rover pension plans, Ford contributed around US$600 million. Mr. Ratan N. Tata, Chief Operating Officer of the Tata Sons and the Chief Financial Officer of the Ford Motor Group, Don Leclair and Mr. Lewis Booth, Executive Vice-Chairman of the Ford of Europe Motor Company and Mr. La Jaguar La Tata Motors attended this ceremony at the Gaydon headquarters at the Jaguar Land Rover.

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    4. Flipkart acquires Myntra

    Flipkart and Myntra Logo
    Flipkart and Myntra Logo

    In May 2014, after months of rumors, India’s leading e-commerce company Flipkart acquired a trendy rival Myntra, a development that had to do with the increasing presence of Amazon in India. None of the parties verified the acquisition’s exact valuation, but sources placed the cash and equity transaction between 300 and 330 million dollars.

    Flipkart launched as a supermarket in 2007, offering apparel and electronics in all categories. It also offers furnishings and white products. The change is anticipated to help Flipkart reinforce its clothes collection and contend with Amazon and Snapdeal more vigorously. With his co-founder and CEO Mukesh Bansal joining Flipkart and running the apparel company, Myntra will continue to run as an autonomous entity.

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    5. Ola acquires TaxiForSure

    Ola and TaxiForSure Logo
    Ola and TaxiForSure Logo

    Ola, one of India’s largest ride-hailing operation, acquired TaxiForSure for $200 million as a smaller, but value-centric, cash and equity acquisition in March 2015. Ola’s footprint in the country has been extended by adding TaxiForSure’s 15,000+ fleet onto its network across 47 cities. In October 2014, Ola raised SoftBank $210 million in addition to the 41,5 million dollars it raised earlier, adding over a quarter-billion dollars in overall financing in 2014. When TaxiForSure was acquired, it had 15,000 vehicles in 47 cities on our network a few months after the launch of Ola in January 2011. In India, it has recently been an upright battle between Uber and Ola, who have joined Didi Kuaidi, GrabTaxi, and Lyft globally.

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    6. Zomato acquires Urbanspoon

    Zomato and Urbanspoon Logo
    Zomato and Urbanspoon Logo

    In January 2015, Zomato purchased a 50 million dollar US competitor, Urbanspoon, at what was one of the highest offshore transactions for an Indian startup. The purchase marked Zomato‘s visit to the US, Canada which Australia, and took over 22 countries around the world. The takeover signals the entrance of Zomato in the USA. This is the sixth and largest purchase of Zomato in the last six months. The purchase will rise from 300,000 to 1.000,000 restaurants globally more than three times the inventory of Zomato’s Restaurant. In the coming months, Urbanspoon will pass onto Zomato.com, and the Zomato software will be used by all Urbanspoon app users. Zomato increased the overall amount of venture funds raised by the firm to $113 million from Sequoia, Knowledge Edge, and Vy Capital in November.

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    7. MakeMyTrip acquires MyGola

    MakeMyTrip and Mygola Logo
    MakeMyTrip and Mygola Logo

    A leader among India’s travel reservation sides was the Nasdaq-listed MakeMyTrip, a pioneer in Indian tourism reservation – which was funded by investors such as Helion Venture Partner, 500 Partners, and Blumberg Capital at the last minute. Mygola, founded by IIT Mumbai in 2009, says travelers can create customs journeys in 15 minutes by using Bapna and Prateek Sharma. It has up to 5000 installations in the Google Playstore on Android and is present in 16 cities worldwide. The acquisition happens as Indian travel is heating up, as an investment in 2015, for the most part, early-stage, has crossed 71 million dollars, compared to 55 million dollars in all of 2014 (about 440 crores).

    MakeMyTrip Success Story – Founder | Business Model | Revenue
    More Indians are now booking tickets and hotels online than ever before. Nothingcan beat the comfort of being able to plan a trip from the comfort of your home.You can check out the prices and compare them to get the best out of the deal. A company that holds a major share in the Indian online …

    FAQ’s

    Let’s discuss some of the frequently asked questions (FAQ’s)  related to startup ecosystem..

    What do you mean by the term Acquisitions?

    An acquisition is when one company purchases most or all of another company’s shares to gain control of that company. Acquisitions, which are very common in business, may occur with the target company’s approval, or in spite of its disapproval.

    On what metrics the company acquires other companies?

    These metrics should be followed before evaluating an acquisition- Financial value of the company, Asset value of the company, Possible resale value of the company, and its assets.

    Acquisitions, which are very common in business, may occur with the target company’s approval, or in spite of its disapproval.

    Which are some of the latest acquired companies?

    Larsen and Toubro Ltd (L&T) gained a controlling interest in Mindtree Ltd, raising its stake to 60% in the Bengaluru-based company on 27 June 2019 and successfully concluding India’s first hostile takeover of an IT company.

    How do startups get acquired?

    The startups that last usually get acquired for their market share before they hit those numbers. Intellectual property is the most common way to build a defensible product. In fact, many startups with a proprietary product get acquired before they even take their solution to the market.

    How long does a startup acquisition take?

    Corporate mergers and acquisitions can vary considerably in the time they take to be completed. This length of time may span from six months to several years. There are a number of individual steps that need to be completed successfully by two public companies before they are legally combined into a single entity.

    Conclusion

    Startup acquisitions happened in the past and will keep happening in the future. If there is a slight possibility that the competitor can be a problem in a long run then acquisitions will happen for sure. Investors will keep looking for further IPOs, new firms and acquisitions from publicly traded companies in the subsequent year as the number of acquisitions, and their scale in India is growing. Up until now, they have relied primarily on other startup acquisitions. As the Indian startup ecosystem continues to expand and draw more foreign interest, the value of M&A transactions in the country can only be projected to rise in the coming years accordingly.

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  • The Curious Case of Amazon, Flipkart & FDI – The Impact of New FDI Rules

    Rapid FDI stride is something India is boasting of since economic liberation in 1991, And indeed it brought in huge investments and millions of jobs alongside. No doubt market reforms placed the economy on the fast track of development. But on the flip side, soon after FDI in multi-brand retail got introduced in 2012 local businesses and trades took a hit quite as expected. Especially since gigantic foreign players like Amazon entered the market, Plenty of jobs were lost while micro & small retailers suffered significant losses.

    First Significant Change in FDI Policy That Hit Amazon/Flipkart
    Present Scenario and Government’s Role
    E-commerce/E-retail Growth in India
    Why E-commerce Regulation is Vital for Indian Economy
    Fresh Allegations Amidst Sensational Revelations
    What lies Ahead for Amazon & Flipkart
    FAQ

    First Significant Change in FDI Policy That Hit Amazon/Flipkart

    The ease & comfort of e-shopping has been intelligently multiplied in value by these global giants by offering heavy discounts. Therefore, to level out the playing field, Govt of India brought in a major policy shift Via FDI into e-commerce in Dec 2018. This change was persuaded by Indian brick-and-mortar retailers who were long unhappy with the supposed unfair trade practices of these multinational corporations.

    They contested that e-commerce retailers like Amazon & Walmart controlled Flipkart were creating complex business structures to smartly bypass foreign investment rules. They do it by finding a way around FDI rules to avoid complying with orders that are detrimental to these corporation’s interests & profits.

    US companies deny these charges, But govt of India had to look over the interests of Indian businesses first & so it did. Now, these giants were disallowed to sell products from sellers in whom they had an equity stake.


    The Rise Of E-commerce Industry In India
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    Present Scenario and Government’s Role

    However, this didn’t seem to deter these foreign participants from working around policies to keep competition from Indian retailers at bay. So the Govt of India again is revisiting the FDI rules off late to tweak it further and Prohibit even those sellers from selling on these platforms, in whom these e-commerce companies have indirect stake through their parent company.

    Prohibit sellers who purchase from the e-retailer or its group firm & intern sell on the e-commerce site (presently the seller is allowed to transact 25% of its inventory under this arrangement)

    Govt had earlier in 2020 tightened the noose on FDI from neighboring countries as well, who share land borders with us like China, who now will have to seek govt approval before investing. The objective behind was to protect opportunistic take-overs & acquisitions of Indian companies in distress by foreign giants, due to COVID-19 induced global recession.

    Henceforth, any new investments in any sector from these (restricted) countries namely China, Pakistan, Bangladesh, Nepal, Myanmar, Bhutan and Afghanistan will have to take the govt route, and not the automatic route which was open to it earlier.

    E-commerce/E-retail Growth in India

    Let us look at some fascinating facts & figures before we discuss this subject further:


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    Why E-commerce Regulation is Vital for Indian Economy

    According to an American market research firm, Amazon & Flipkart together occupy about 63% of the total e-commerce space in India. Now, if domestic retailers, online & offline i.e. physical brick-and-mortar stores have to have a fair share of the market or a fair competition at least govt has to devise a strategy to promote Indian e-commerce & Industry without discouraging FDI. It’s a tough proposition.

    FDI is looked over by Indian departments of commerce & industry. They formulate laws and regulate FDI inflow by framing new policies and/or modifying scrapping old policies & rules. While this is done to further the economy on a macro level, its ripple effect on the micro economy can’t be overlooked either.

    So it has to strike a fine balance between retail reforms, an open market which on one hand benefits end consumers and provides millions of jobs. On the other hand predatory pricing, deep discounting by online retailers makes small retailers(mainly owner-managed & run stores) fight for survival tougher.


    Tools And Techniques Employed by E-Commerce Sector Post COVID-19
    How is the e-commerce sector dealing with the changes brought about by Covid-19?” let us try to answer this question in detail and discuss emerging trends in the e-commerce industry.


    Fresh Allegations Amidst Sensational Revelations

    A large growing economy like India, where low production costs and high-quality labor service lures investors from the world over, developed nations like the US, European and China, is also most prone to manipulations by foreign players if given a free run. As feared in this tweet by CAIT, Amazon India has been disrespecting laws reveals a recent Reuters investigation.


    In January 2020, India’s antitrust watchdog, the Competition Commission of India, announced it was investigating Amazon and Walmart Inc’s Flipkart following a complaint by an Indian trader group. The commission cited four alleged anti-competitive practices: exclusive launch of mobile phones by the e-commerce firms, promoting preferred sellers on their websites, deep discounting, and prioritizing some seller listings over others.

    What lies Ahead for Amazon & Flipkart

    While the colossal change in consumer behavior is unlikely to fade in near future, Amazon & Flipkart also maintain that they have been complying with Indian laws duly & are denying all charges. Govt is in talks with stakeholders for over a month. Therefore, for now, it is difficult to say what impact the policy changes, if any, will bring in, though e-retail unquestionably seems to have a bright future in the Indian market of a billion-plus.

    FAQ

    How much FDI is allowed in retail?

    51% FDI in multi-brand retail through automatic route i.e. without having to seek govt approval.

    Do online marketplaces like Amazon have their own products?

    Amazon and other multi-brand retail marketplaces are only allowed to connect sellers & buyers on their website in India. They are not allowed to purchase, hold, market and sell stocks as their own.

    Who started e-commerce in India?

    K Vaitheeswaran was the first person who opened the first online marketplace for Indian consumers called Fabmart.com in India in 1999, now rebranded as ‘More’.

  • Sam Walton: Founder of Walmart

    Sam Walton was an American businessman and entrepreneur. He is famous for establishing the retailers Walmart and Sam’s Club. Walmart is an American multi-national retail corporation that operates a chain of hypermarkets. It eventually grew and became the world’s largest corporation by revenue and the biggest private employer. For a specific period of time, Sam was the richest man in America. He also received the Distinguished Eagle Scout Award from the Boy Scouts of America. At the time of his death, he had a net worth of $8.6 billion.

    Sam Walton: Walmart story

    Sam Walton- Biography

    Name Samuel Moore Walton
    Born 29 March, 1918
    Birthplace Kingfisher, Oklahoma, U.S
    Death 5 April, 1992
    Life-span 74 years
    Nationality American
    Education University of Missouri
    Profession Businessman
    Known for Founder of Walmart and Sam’s Club
    Net worth $8.6 billion ( at the time of death)
    Father Gibson Walton
    Mother Nancy Lee
    Brother James "Bud" Walton
    Spouse Helen Robson
    Children S. Robson Walton, John T. Walton, Jim Walton, and Alice Walton
    Grandson Lukas Walton

    Sam Walton – Personal Life
    Sam Walton – Education
    Sam Walton – Professional Life
    Sam Walton – Military Journey
    Sam Walton – Startup
    Sam Walton – Walmart
    Sam Walton – Sam’s Club


    Walmart | American Multinational Retail Company | Company Profile |
    Company Profile is an initiative by StartupTalky to publish verified informationon different startups and organizations. The content in this post has beenapproved by the organization it is based on. Walmart Inc. is an American multinational retail corporation that operates achain of hypermarkets…


    Sam Walton – Personal Life

    Sam was born in Kingfisher, Oklahoma. He lived with his parents near their farm. However, the family was unable to cope up with their financial needs through farming. Gibson Walton, Sam’s father, then decided to mortgage his farm and worked for his brother’s Mortgage Company which was an agent of Metropolitan Life Insurance.

    The family later moved to Columbia, Missouri. He grew up during the Great Depression of the 1930s. He used to do the household chores like milking the cow, bottling the surplus, and delivering it to customers to meet the financial ends of the family. After completing his household errands, he used to deliver Columbia Daily Tribune newspapers on paper route and sell magazine subscriptions.

    Sam Walton – Education

    Sam became the youngest Eagle Scout while studying in eighth grade in Shelbina, Missouri. He then studied at David H. Hickman High School in Columbia and was given the title of the ‘most versatile boy’.

    He graduated with a Bachelor of Economics from University of Missouri in 1940 and was voted as the “permanent president” of the class.

    Sam Walton – Professional Life

    Sam did various jobs to fulfill the financial requirements of his family during the Great Depression period. He waited tables in exchange for meals. He earned several honors and awards. He joined the Zeta Phi part of Beta Theta Pi fraternity. He also received the QEBH, the national military honor Scabbard and Blade. Sam Walton also served as the president of Burall Bible Class and Stephens College.

    He joined J. C. Penney as a management trainee in Des Moines, lowa. This job paid him $75 per month. He resigned after 18 months in 1942 to join the military force serving in World War II.


    Cracking The Walmart Case Study – World’s Largest Retail Company
    Walmart is one of the largest retail companies in the world. It was founded in1962 by Sam Walton. The headquarter of this company is situated in the UnitedStates. The main aim of the company is to provide consistent discounts, loyalcustomer service, and fast friendly service. Walmart’s targets …


    Sam Walton – Military Journey

    Sam’s military journey taught him to be a giver rather than a taker. He also realized his interest in retailing and business while serving in the military. He joined the military in the U. S Army Intelligence Corps and supervised security at aircraft plants and at prisoner of war camps. He eventually acquired the prestigious position of captain. Sam Walton then left the Army and to work on his retail store idea.

    Sam Walton – Startup

    At age 26, Sam started his first variety store with a $20,000 loan from his father-in-law and $5,000 that he saved while serving in the Army. He then purchased a store which was a franchise of Butler Brothers chain. He offered prices as good or better than the nearby stores and consistently stocked a variety of goods in his store.

    He opened his second store called the Eagle department store. After seeing the growth in sales, the landlord started rolling out some contracts/clauses which Sam wasn’t comfortable with. Sam was forced to leave the rented store and got fixtures for $50,000 which he called “a fair price”.

    He purchased a new location in Bentonville that eventually grew from $72,000 to $105,000 in the first year of sales and then to $175,000. The new store was named “Five and Dime”. Sam was encouraged to escort more locations and open more Ben Franklin franchises.


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    Sam Walton – Walmart

    Walmart Logo

    The company was first labeled Walmart on 2 July, 1962 in Rogers, Arkansas. It was then called Wal-Mart Discount City store. Sam focused on marketing American-made products and worked on finding American manufacturers who could supply merchandise for the whole Walmart chain at reasonable prices to stand firmly before foreign competitors.

    Sam’s model for Walmart Incorporation offered two advantages; the first one was ‘limited existing competition’. The second advantage was the gigantic store that discouraged businesspersons in the nearby areas from entering the market. He emphasized logistics, locating stores of regional warehouses, and distributing through Walmart-owned trucking service.

    Sam Walton – Sam’s Club

    Sam introduced Sam’s club, an American chain of membership-only retail warehouse clubs owned and operated by Walmart Incorporation. Sam’s Club was founded in 1983 and it was named after the founder. The company ranks second among warehouses clubs in sales volume with sales worth $57.839 billion. Sam’s Club operates 599 membership warehouse clubs in 44 states of the U.S.

  • World’s Largest Retailer Walmart Plans To Grow Sales

    Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved by the organization it is based on.

    Walmart Inc. is an American multinational retail corporation that operates a chain of hypermarkets, discount department stores, and grocery stores, headquartered in Bentonville, Arkansas.

    The company was founded by Sam Walton in 1962 and incorporated on October 31, 1969. It also owns and operates Sam’s Club retail warehouses. As of October 31, 2020, Walmart has 11,510 stores and clubs in 27countries, operating under 56 different names.

    Walmart – Company Highlights

    Startup Name Walmart Inc.
    Headquarters Bentonville, Arkansas, U.S
    Industry Retail
    Founded July 2, 1962
    Founder Sam Walton
    CEO Doug McMillon
    Areas Served Worldwide
    Website www.walmart.com

    Walmart – About and How it Works?
    Walmart – Logo and its Meaning
    Walmart – Founder and History
    Walmart – Mission
    Walmart – Business Model
    Walmart – Revenue and Growth
    Walmart – Investments
    Walmart – Acquisitions
    Walmart – Competitors
    Walmart – Challenges Faced
    Walmart – Future Plans

    Walmart – About and How it Works?

    Wal-Mart was founded by Sam Walton in Rogers, Arkansas, in 1962 and focused its early growth in rural areas, thereby avoiding direct competition with retailing giants such as Sears and Kmart.

    Walmart, Inc. engages in retail and wholesale business. The Company offers an assortment of merchandise and services at everyday low prices. It operates through the following business segments: Walmart U.S., Walmart International, and Sam’s Club. The Walmart U.S. segment operates as a merchandiser of consumer products, operating under the Walmart, Wal-Mart, and Walmart Neighbourhood Market brands, as well as walmart.com and other e-commerce brands. The Walmart International segment manages supercentre, supermarkets, hypermarkets, warehouse clubs, and cash & carry outside the United States.

    Walmart is the world’s largest retailer company by revenue, with US $514.405 billion, according to the Fortune Global 500 list in 2019. It is also the largest private employer in the world with 2.2million employees. It is a publicly traded family-owned business, as the company is controlled by the Walton family. Sam Walton’s heirs own over 50 percent of Walmart through both their holding company Walton Enterprises and their individual holdings.

    Walmart – Logo and its Meaning

    As for the hidden message of Walmart logo, it considered that it symbolizes 6 sparks. And each spark, in turn, symbolizes ideas, which are making the company successful. They also remind of Sam Walton, who believed in himself and his success.

    Logo of Walmart
    Logo of Walmart

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    Walmart – Founder and History

    Samuel Moore Walton, an American businessman and entrepreneurs is the founder of Walmart.

    Founder of Walmart

    The history of Walmart, an American discount department store chain, began in 1950 when businessman Sam Walton purchased a store from Luther E. Harrison in Bentonville, Arkansas, and opened Walton’s 5 & 10. The Walmart chain proper was founded in 1962 with a single store in Rogers, expanding outside Arkansas by 1968 and throughout the rest of the Southern United States by the 1980s, ultimately operating a store in every state of the United States, plus its first stores in Canada, by 1995. The expansion was largely fuelled by new store construction, although the chains Mohr-Value and Kuhn’s Big K were also acquired. The company introduced its warehouse club chain Sam’s Club in 1983 and its first Supercentre stores in 1988. By the second decade of the 21st century, the chain had grown to over 11,000 stores in 27 countries.

    Walmart – Mission

    Walmart’s mission statement says, “We feature a great selection of high-quality merchandise, friendly service and, of course, Every Day Low Prices. We also have another goal: to bring you the best shopping experience on the Internet.

    Walmart – Business Model

    Walmart can develop, open, and operate units at the right locations and to deliver a customer-centric omnichannel experience. That largely determines its competitive position within the retail industry. Walmart employs many programs designed to meet competitive pressures within its industry.

    These programs include the following:

    • EDLP (everyday low price): items priced at a low price every day so Walmart customers trust that its prices will not change under frequent promotional activity;
    • EDLC (everyday low cost): effort to control expenses so that savings can be passed along to customers;
    • Rollbacks: pass cost savings on to the customer by lowering prices on selected goods;
    • Savings Catcher, Save Even More and Ad Match: strategies to meet or be below a competitor’s advertised price;
    • Walmart Pickup: customer places order online and pick up for free from a store. The merchandise is fulfilled through Walmart distribution facilities;
    • Pickup Today: a customer places order online and can pick it up at a store within four hours for free. The order is fulfilled through existing store inventory;
    • Online Grocery: a customer places grocery order online and has it delivered to home or picks it up at one of Walmart participating stores or remote locations; and
    • Money-Back Guarantee: ensure the quality and freshness of the fruits and vegetables in Walmart stores by offering customers a 100 percent money-back guarantee if they are not satisfied.

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    Walmart – Revenue and Growth

    Walmart annual revenue for 2020 was $523.964B, a 1.86% increase from 2019

    Year Annual Revenue Percentage change
    2019 $514.405B +2.81%
    2018 $500.343B +2.98%

    Walmart – Investments

    Walmart has made 12 investments. Their most recent investment was on Oct 12, 2020, when Ninjacart raised $30M.

    Date Organization Name Round Amount
    Oct 12, 2020 Ninjacart Corporate Round $30M
    Jul 14, 2020 Flipkart Corporate Round $1.2B
    Dec 11, 2019 Ninjacart Series C $10M
    Oct 15, 2019 Level Home Corporate Round $71M
    Mar 9, 2019 Girls Who Code Grant $3M
    Nov 6, 2018 WalMart India Venture Round $37.7M
    Oct 25, 2018 FreshMart Series B
    Aug 8, 2018 Dada-JD Daojia Corporate Round $500M
    Oct 20, 2016 Dada-JD Daojia Funding Round $50M
    Apr 1, 2015 Triad Workforce Solutions Grant $320K

    Walmart – Acquisitions

    Walmart has acquired 24 organizations. Their most recent acquisition was JoyRun on Nov 23, 2020.

    Acquiree Name Date Amount About Acquiree
    JoyRun Nov 23, 2020 JoyRun is a community based delivery company
    CareZone Jun 15, 2020 CareZone makes it easy to manage multiple medications, organize health information, and access health services from your smartphone
    Polymorph Apr 11, 2019 Polymorph is a white-label SaaS monetization platform for publishers to maximize revenue, reduce costs and deliver better ad experiences
    Aspectiva Feb 25, 2019 Turn Product Reviews into a Smarter Shopping Experience
    Art.com Nov 20, 2018 Art.com is an online platform designed to sell wall art and decorative items
    Bare Necessities Oct 13, 2018 Independent boutique retailers of luxury lingerie, swimwear and accessories
    Eloquii Oct 2, 2018 $100M Eloquii offers an online plus size clothing store featuring women’s plus size fashion, clothes, and accessories
    Flipkart May 9, 2018 $16B Flipkart is an e-commerce marketplace that offers over 30 million products cross 70+ categories
    Wim Yogurt Jan 1, 2018 Wim Yogurt is a modern cooking appliances for healthy homes
    Parcel Oct 3, 2017 Parcel is the same-day / last-mile delivery company built for the age of e-commerce

    Walmart – Competitors

    The top 10 competitors in Walmart‘s competitive set are Amazon, Target, Costco, Kmart, Kroger, ALDI, Walgreens, Tesco, Carrefour, and Best Buy.

    Walmart – Challenges Faced

    Walmart has faced issues with its employees involving low wages, poor working conditions and inadequate health care. Approximately 70% of its employees left within the first year.

    Walmart has been criticized by many groups and individuals, such as labour unions and small-town advocates, for its policies and business practices, and their effects. Criticisms include charges of racial and gender discrimination, foreign product sourcing, anti-competitive practices, treatment of product suppliers, environmental practices, the use of public subsidies, and its surveillance of its employees. The corporation denies any wrongdoing and says that low prices are the result of efficiency.

    In 2005, labour unions created new organizations and websites to criticize the company, including Wake Up Walmart (United Food and Commercial Workers) and Walmart Watch (Service Employees International Union). By the end of 2005, Walmart had launched Working Families for Walmart to counter those groups.  Efforts to counter criticism include a public relations campaign in 2005, which included several television commercials. The company retained the public relations firm Edelman to interact with the press and respond to negative media reports, and has started working with bloggers by sending them news, suggesting topics for postings, and inviting them to visit Walmart’s corporate headquarters.


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    Walmart – Future Plans

    The world’s largest retailer plans to grow sales by $45 billion to $60 billion in the next three years and spend $20 billion buying back its own shares.

    The growth targets, stock buyback program and an $11 billion capital expenditure program, down from $12.4 billion this year, were announced Wednesday morning in New York at the retailer’s annual fall investor conference.

    “We are uniquely positioned to win with the future of retail,” Wal-Mart Stores, Inc., president and CEO Doug McMillon told attendees, echoing what has been a familiar omnichannel theme for the company in recent years. “We will be the first to deliver a seamless shopping experience at scale.”

    Achieving that goal is key to the company’s long term growth, but to get there the company disclosed the significant investments it has made in technology, wages, pricing and a weak dollar will pressure profits. Walmart CFO Charles Holley said the company’s earnings per share, which are projected to decline this year compared to last year, will fall another 6% to 12% next year as investments in the business peak. However, within three years, profits are forecast to rebound and grow between 5% and 10%.

    Investors were looking for a faster growth trajectory which explains why following the release of the three-year profit forecast shares dropped roughly $5 to hit a new 52-week low near $60. Anticipating such a negative reaction, Holley announced Walmart had authorized a new $20 billion share repurchase program and committed to spend those dollars within two years even though it had $8.6 billion in authorization remaining under the existing program.

  • Walmart investment In Tata Group For ‘Super App’: $25 Bn

    The Tata Group has already made its super-application desire open for public in August. Walmart investment in Tata group is presently in the news with the investors for stakes in the digital media, legitimately taking on Jio and the web-based business platforms such as Amazon and Flipkart. As per the news of Walmart investment in Tata group by Bloomberg, it is taking an eye at getting monetary or strategic consultants, and Tata Sons is apparently hoping to unite its digital platforms and make another institution.

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    The Information Has Been Released

    Walmart investment in Tata Group_Startuptalky
    $25 Billion Investment

    This exclusive information of Walmart investment in Tata group has been released by Reliance Industries Ltd, which is authorized by the richest person in Asia, Mukesh Ambani. He apparently accumulated over $20 billion from various investors such as Facebook, Alphabet’s Google, KKR and Co and Silver Lake Partners. He made this possible by selling the stakes in its digital business Jio Platforms. According to the progressing conversations among about the Walmart investment in Tata group, the super app could be dispatched as a joint endeavor among Tata and Walmart, which will empower utilizing on the collaborations between Tata’s web-based business and Flipkart.

    The Walmart investment in Tata group presents the ‘super app’, which targets to make a computerized administrations behemoth offering a wide scope of items in the market space. A super app is a solitary application that provides a varied scope of aids. These services range from food, money related solutions, computerized administrations, and academic training, among others. They have focused on a developing populace of well informed customers, tempting them with concessions, free returns and simple trades.

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    The Business Further

    walmart investment in india_Startuptalky
    Super App Incoming

    This app from Walmart investment in Tata group is regarded as an idea is more or less famous in Southeast Asian nations where other applications, for instance, Grab, GoJek and Meituan are also broadly utilized by the people there. The business of Walmart investment in Tata group is probably going to be facilitated under the Tata Sons auxiliary, where it alongside Tata’s other retail channels such as Tata Cliq, StarQuik, Tata Sky, Tanishq and Croma, which is going to get converted into one app.

    As per the continuous talks about the Walmart investment in Tata group, the new advanced stage business is proposed to be controlled by Tata-Walmart together, and there could be more international financial investors roped in too. Goldman Sachs has been assigned as the venture financier by Walmart for the proposed exchange, as has been reported by one of the anonymous source.

    More About The Unity

    super app india_Startuptalky
    Walmart’s Investments

    To add more, it has been accounted that the Walmart group is already having talks with the Tata group for planned-investments in the business, “Tata group share is in talks with Walmart for a deal entailing a strategic Walmart investment in Tata group share in the super app platform business. The Walmart investment could touch up to $20-25 billion eventually for a large stake in the proposed super app that is about to be hosted under a Tata Sons subsidiary”, according to the sources reported by Mint. This investment is apparently going be bigger than the investments made by Walmart in Flipkart for a authorizing stake, which summed up to $16 billion.

    The super app from the Walmart investment in Tata group share has already been planned to get dispatched in India in the month of December or January. It will then unite Tata’s shopper business under one channel offering a wide scope of items in the market space, as per the information by Mint. The things that will be included in the offering medical care, food and staple requesting, protection and budgetary services which also including style, way of life, gadgets, over-the-top administrations, instruction and bill installments, etc.

    The Subsidiaries That Make Reliance Industries Successful
    Reliance Industries limited is an Indian multinational conglomerate company thatis headquartered in Mumbai, India. Reliance owns businesses across India engagedin energy, petrochemicals, textiles, natural resources, retail andtelecommunications. Reliance is one of the most profitable and the larg…

    Last But Not The Least

    tata group share_Startuptalky
    Targeting for the proper audience

    Tata’s purchaser organizations incorporate the brand Titan, which is primarily the brand for watch and jewelry, Trent. Portions of shares from Tata Consultancy Services, Tata Motors and Tata Steel increased over 1% each, with TCS the top lift to the Nifty 50 list. Tata Consumer Products generally offers tea, coffee, water, salt, lentils, spices, ready-made things to eat, sugar, and few such things to sell. Titan Co. Ltd. fabricates and markets design adornments, for example, watches, jewelries and eye-wear.

    Walmart Investment in Tata Group

    If this deal becomes a success by the Walmart investment in Tata group, it will top its shares in Flipkart, for which the U.S. based organization had already paid $16 billion for a 66% stake. Juxtaposing with platforms like Jio or Amazon, Tata groups is having the biggest establishment of its own marked items that are offered to retail clients.

    This is the latest news from Walmart investment in Tata group share. We will also keep you updated more about this information as soon as the news is out in the air. So, stay tuned to get updated about super app India as this is the latest Walmart investment in India.

  • Steps Taken by Online Food Delivery Startups amid CoronaVirus Outbreak

    The Coronavirus or COVID-19 which started last year in December in Wuhan, China has impacted the global economy and no industry sector has remained immune to it. All businesses, startups and industries across the globe are coming up with safety measures to deal with the virus like asking employees to work from home, avoid social gatherings, etc. Foodtech startups are no exception to this.

    Top Indian food delivery platforms Zomato and Swiggy together deliver an estimated 2.6 million orders every day. But they have taken multiple measures to deal with the situation. These measures ensure the safe food delivery considering the safety of delivery executive as well as consumers. The measures are helping these startups to keep operations going and to reduce any negative impact on consumer deliveries

    Foodtech Startups to Follow Hygiene Practices

    Indian foodtech startups Swiggy and Zomato have announced several safety measures in an effort to combat the novel coronavirus. While the Bengaluru based foodtech unicorn Swiggy already sent an email to all its consumers how they are taking the different measures to cope with the situation. Zomato soon followed suit with safekeeping measures of its own like contact-less delivery.

    The main focus of the announcements is to inform people about different measures that food delivery platforms are taking to ensure that their delivery partners follow all the safety and hygiene guidelines approved by the Ministry of Health and Family Welfare(MoHFW). They also announced that the consumer will now have the option of choosing to ask the delivery partner to leave the food at their doorstep. Some startups are also offering insurance and financial support to delivery staff in case they are infected with the virus

    There are certain directives that these startups are following. They ensure that the crew member who assembles the food, the one who packs food and the delivery executive do not touch the food with bare hands and take all possible precautions to ensure hygiene. The delivery packets are sealed and delivered by a runner who drops the order at a pre-appointed spot usually outside the door and then watches from a safe distance while you pick up your order and go back inside.

    Co-founder and CEO of Zomato, Deepinder Goyal explained this through a tweet that “A consumer can now choose for this option through our ‘delivery instructions’ feature.” An app update over the weekend will make this explicitly clear to everyone.” Through this option, the delivery partner will keep the delivery parcel on a clean surface outside the door. When the consumer receives a photo of the delivered food, the consumer can then pick up the package at their convenience.

    As India prepares to face the current health crisis, Westlife Development, the company that owns and operates McDonald’s restaurants in West and South India, has launched contactless delivery service to deliver food to the customers’ doorstep. According to the company, McDonald’s India is ensuring that food reaches customers without being touched by bare hands and delivered safely with by following social distancing measures.

    “Our customers’ safety has been and will continue to be our top priority. On one hand, we have increased the safety and hygiene processes at our restaurants. On the other hand, we are ensuring contactless delivery to retain consumers’ trust in McDonald’s. Both our consumers and the industry look up to McDonald’s for path-breaking initiatives and contactless delivery,” said Smita Jatia, managing director of Hardcastle Restaurants.

    Online Food Deliveries Declining Fast

    Unfortunately, even after adopting the hygiene practices, online food delivery has seen huge fall in demand. Online food delivery orders for Zomato and Swiggy have dropped 70% in the last 10 days as customers step back and top restaurants shut shop during lockdown induced by the Covid-19 virus outbreak. The reason behind this is that people do not want to perform any practices, which in any way, can expose them to the virus.

    Their investors revealed that even before the lockdown, the orders had started declining. In the first two weeks of March, food delivery orders declined 20%. When lockdown was imposed, Swiggy and Zomato said about 60 to 70% of its cities would be shut for food delivery including few prominent ones. As a result, steady state of 2.5 million deliveries a day, the deliveries have fallen down quickly. In the last 10-15 days, online food delivery orders have dropped 70% to under 1 million a day.

    But considering food delivery startups, the Grocery delivery apps are in demand more than ever not only in India but in many countries during this health crisis. As many countries are under lockdown, the governments are asking people to strictly avoid getting out of their houses to maintain social distancing. Hence, majority of the people are relying on the Grocery delivery apps to avoid social gatherings.

    As the COVID-19 pandemic spreads across the countries, grocery delivery apps have begun seeing record numbers of daily downloads, according to new data from app store intelligence firm Apptopia. The firm said that online grocery apps like Instacart, Walmart Grocery and Shipt hit yet another new record for daily downloads for their respective apps.

    Typically, these apps see tens of thousands to as many as 20,000+ downloads per day. But on April 12, Instacart saw more than 38,500 downloads and Walmart Grocery saw nearly 54,000 downloads. Experts told the delivery strategies need to be better optimised at this time of uncertainty. Considering grocery is in high demand, this makes sense for all players involved in it.


    Also Read: Ideally Tested Food Business Ideas you can Start in 2020


    Zomato & Swiggy will also deliver Groceries Now

    In India too, Grofers, BigBasket and other grocery delivery apps have seen a boom in demand over the past week on the back of panic buying. As many consumers are stuck at home, they are heavily relying on these online grocery stores offering doorstep delivery. Seeing these demands, many foodtech startups are also turning towards these grocery sales to earn some revenue.

    Food-delivery and restaurant discovery app Zomato has decided to try hands at the grocery sale as the category sees a major demand amid the Covid-19 outbreak. The Gurugram-based startup Zomato has decided to partner with e-grocers, Grofers and BigBasket, to sell food products and essentials on its platform by facilitating their deliveries.

    Online Grocer Delivery or E-grocer
    Zomato & Swiggy have started to Deliver Grocery in Major Cities

    Zomato has begun delivering grocery in more than 80 cities in India. Users can access this service by downloading the Zomato app and visit the Zomato Market section. Zomato Market identifies nearby grocery stores that are available and open for delivery. They have started grocery delivery in 80 plus cities across India to help with the supply of essentials.

    CEO & founder of Zomato, Deepinder Goyal said, “Our delivery network in the country is the second best after India Post. Thus, we are ensuring that in every effort we put it to good use to serve the community. We would like to thank the government authorities, grocery stores, FMCG companies and other startups that have come forward to partner with us and support the community in this endeavour.”

    Apart from its grocery deliveries, Zomato has also extended paid Zomato Gold memberships by two months at zero additional cost. This new extension is valid in India, UAE, Australia, Indonesia, Philippines, Lebanon, Turkey, New Zealand, Portugal, and Qatar.

    The food delivery app Swiggy is also not behind in this league. Swiggy has announced a new service to deliver groceries through the application. The lockdown has encouraged the company to spread this service to over 125 new cities across India. Swiggy will be providing essential commodities by partnering with numerous national brands.

    Swiggy has launched a hyper local delivery service called ‘Genie’ that will pick and drop items from any local store that is open. The service is currently only available for essentials and even medicines. During the launch of the service in September last year, the service was labeled ‘Swiggy Go’.

    Swiggy will be partnering with Hindustan Unilever Ltd., P&G India, Godrej Consumer Products Ltd., Dabur India Ltd., Marico Ltd., Vishal Mega Mart Pvt. Ltd., Adani Wilmar Ltd., Cipla Ltd to provide essential items across various cities.


    Also Read: Abhinay Choudhary: Simplified Grocery Shopping Through BigBasket


    Conclusion

    Due to lockdown, Swiggy and Zomato are finding it difficult to grow online food deliveries but this has led them to partner with local grocery shops to provide essentials to the people who want to avoid social gatherings. But this has given people a good opportunity to maintain social distancing by ordering groceries from home only.