Wholesale trader Metro rejects offers from potential investors
Wholesale trader, Metro India, turns down offers from potential investors including Tata.
Wholesale trader Metro rejects offers from potential investors like Tata Group, Siam Makro’s Lots Wholesale.
Firstly, Metro AG is a Germany based multinational company. It extends business membership to Cash and Carry stores. Now, it’s Indian wholesale business, Metro Cash and Carry India, is seeking higher valuation. It’s a B2B model.
In 2019, the trader was seeking external investments too with a US-based PE because it was planning to go public.
Why wholesale trader Metro seeks to raise funds in India?
Currently, Cash and Carry Metro India has 30 wholesale stores in India.
A spokesperson of Metro says that India is a major part of their portfolio. Moreover, Metro’s Indian subsidiary is witnessing a fast growth. It is realising profit for 4 years in a row now.
In FY 20-21 ending September 2021, it made a profit of Rs 6,738 crore which is a 4.1% YOY increase.
Thus, they are looking for expansion in Indian market. To meet the demands of expansion, they need funds infusion. There are ongoing talks with headquarters in Düssledorf, Germany. Although, these have not yet materialised.
Also, the Indian subsidiary wants to remain in race to compete with Reliance, the wholesale business of Amazon, Flipkart backed by Walmart. It turned down investment infusion offers from Lots Wholesale and Tata Groups.
At present, it needs strategic partners.