Do you see Wal-Mart picking up a stake in the digital app of the Tata Group, which is being talked about a lot these days?
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Reliance is not alone in monetizing its digital properties. Another group that has been frantically working on this plan for quite some time now is the Tata Group. The recent Jio deal and the Mistry ownership fallout have made it more urgent.
It is now being reported that the Tata Group could be in very advanced discussions with Wal-Mart of the US to infuse $20-25 billion into the digital super app that could become the principal driver of the Tata’s digital strategy. Wal-Mart is the world’s largest retailer.
What is this Super App all about? The super app is purported to create a digital behemoth that will be the platform to offer a wide range of Tata products in the retail space. To begin with, the super app may be housed as a subsidiary of holding company, Tata Sons.
If the deal goes through, then at $20-25 billion it will be Wal-Mart’s largest single investment in India. Earlier, Wal-Mart had paid $16 billion for a controlling stake in Flipkart. The super app is most likely to be a joint venture between the Tatas and Wal-Mart.
Goldman Sachs will advise Wal-Mart on the super app deal. The deal will also mean that the Tatas will be able to buyout Pallonji Mistry’s stake in Tata Sons by just monetizing part of their $60 billion Tata Super App valuation rather than selling the Tata Sons stake in TCS.