Walmart acquiring Flipkart shakes indian e-commerce
Walmart agreed to buy a 77% stake in Flipkart for $16 billion with the rest being held by minority investors, chiefly Tiger Global Management, Tencent Holdings, Microsoft and co-founder Binny Bansal. It also said it supported Flipkart’s ambition to go public. However, a Flipkart IPO is unlikely to happen for many years to come, as Walmart Inc. will have to invest heavily to make its $16-billion acquisition work.
Walmart could invest $3 billion more in Flipkart within a year of completing the purchase of 77 per cent stake in the Indian e-commerce company. Walmart’s filing assumes significance at a time when Amazon has embraced offline retail, with an affiliate of the Seattle-based company picking up a $27.6 million stake in Indian retailer Shopper’s Stop Ltd. As an economic boost, the war between Flipkart and Amazon will not only create a vast infrastructure of supply chain but also a large number of jobs.
Walmart CEO Doug mcmillon (left) With flipkart CO-FOUNDER Binny Bansal