Wal­mart ac­quir­ing Flip­kart shakes in­dian e-com­merce

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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

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