With billions to spend, Walmart seeks Flipkart e-commerce startup in India

Walmart is nearing a deal to acquire a majority stake in India’s leading online retailer, a bold move that would open another front in its escalating war with Amazon.

The Indian startup, Flipkart, sells everything from clothing to smartphones in the country’s blossoming e-commerce market.

The two sides are in advanced discussions and a deal could be announced soon, according to three people briefed on the matter. Exact terms are not yet final and the talks are fluid, said these people, who spoke on the condition of anonymity because the negotiations were continuing.

Two of the people said the deal would value Flipkart at about $20 billion and that Walmart was looking to acquire a stake of at least 60 percent.

Some analysts say the deal would be an aggressive and risky foray by Walmart into one of the world’s last great open markets for online retailing.

Although India has a significant middle class, most of the nation’s enormous population is still far too poor to afford much more than basic necessities. Flipkart has posted billions of dollars in losses while trying to build its business.

Still, Walmart missed out on China’s e-commerce boom and it does not want to make the same mistake with India — especially with its rival Amazon already a strong player there.

Only about 2 percent of India’s retail sales are online now, but tens of millions of Indians are getting onto the internet every year via cheap smartphones and rock-bottom mobile data prices.

Amazon has committed at least $5.5 billion so far to building its India presence, fighting to gain market share among the country’s young, increasingly tech-savvy shoppers.