Gossipmongers are airing that Flipkart is all set to be acquired by Walmart and now the news has been officially announced. Walmart has formally announced Flipkart’s acquisition where they have paid $16 billion for a 77 percent stake in one of India’s largest e-commerce companies.
Walmart will now face-off
with Amazon in India, who is also one of their biggest rivals back home in the US. Walmart’s acquisition of Flipkart is also back by Google who has brought in $1.5 billion for a 7 percent stake in the e-commerce company.
with Amazon in India, who is also one of their biggest rivals back home in the US. Walmart’s acquisition of Flipkart is also back by Google who has brought in $1.5 billion for a 7 percent stake in the e-commerce company.
Walmart’s President and Chief Executive Officer, Doug McMillon has said " India is one of the most attractive retail markets in the world, given its size and growth rate, and our investment is an opportunity to partner with the company that is leading transformation of eCommerce in the market"
Further added "We are confident this group will provide Flipkart with enhanced strategic and competitive advantage. Our investment will benefit India providing quality, affordable goods for customers, while creating new skilled jobs and fresh opportunities for small suppliers, farmers and women entrepreneurs."
Binny Bansal has said " This investment is of immense importance for India and will help fuel our ambition to deepen our connection with buyers and sellers and to create the next wave of retail in India"
Walmart will now also bring in $2 billion of new equity funding which will help Flipkart in their future business ambitions.
Adrian Lee, Research Director at Gartner told " I see the competition getting more aggressive as Amazon counteroffers Walmart for a stake in Flipkart. Both have their own sizeable cash reserves, and the outcome in India will determine the access to its growing middle class consumers for dominance, outside of the US,"
