Updated By: LatestGKGS Desk
Walmart Buys 77% Stake In India’s E-Commerce Giant Flipkart For $16 Billion: Details
Walmart Buys 77% Stake In India’s E-Commerce Giant Flipkart For $16 Billion- Details, Impact
World giant retailer, US-based company Walmart Inc acquired a 77 % stake in Indian e-commerce company, Flipkart for about $16 billion, a valuation over $20 billion on 9th May 2018.
Japan's SoftBank, an investor, will now exit completely from Flipkart by selling its entire 20 percent stake to Walmart Inc.
Sachin Bansal, who co-founded Flipkart with founder Binny Bansal in Bangalore 2007, would also exit the company after the deal.
This Walmart and Flipkart deal now becomes the world's biggest e-commerce deal ever till date.
Impact of Deal
This deal will impact the whole segment of the market, right from the competitors and the consumers.
Online sellers on Flipkart would feel nervous because Walmart has a reputation for killing small businesses with ultra-low prices. Online sellers on Flipkart fears that Walmart might bring in its own private labels via Flipkart to the Indian consumers, adding to competitive pressures.
Walmart's investment would provide Flipkart not just additional funds to fight Amazon, but also arm it with a formidable ally with extensive experience in retailing, logistics and supply chain management.
Amazon and Flipkart competition for leadership in the Indian market will grow more intense with Walmart buying into Flipkart. Walmart, with huge experience in a first-world economy, will revolutionise Indian retail with low prices and a vast variety of consumer goods.
