US-based retail major Walmart Inc could buy one of the largest e-commerce sites in India. If media reports are to be believed, Walmart is close to finalizing a deal wherein it could pick up anywhere between 60 and 80 per cent stake in Flipkart.
The transaction could value the Bangalore-based online retailer at an estimated amount of USD 15-20 billion. The deal is learnt to be in its final stages. If it completed successfully, then it would mark the largest investments in the country’s e-commerce sector.
The transaction could also make India the biggest emerging market where three of the largest global retailers, Walmart, Amazon and China’s Alibaba, would be pitted against each other.
According to an Indian Express report, this deal could see the exit of some of Flipkart’s investors such as Japan’s Softbank and US-based Tiger Global while some of the other investors could see their shares in the company getting pared.
The deal could come as an opportunity to allocate resources in one of the fastest growing e-commerce markets in the world for Walmart. The US-retailer which has so far failed to make big inroads into markets outside the US, is also getting an opportunity to expand its retail operations in the country.
According to analysts, Walmart could also influence its logistics, supply chain and retail sourcing experience to improve Flipkart’s operations for the company to compete better against its rival Amazon India.
Interestingly, Amazon was also understood to have placed a bid to acquire 60 per stake in Flipkart while seeking a non-compete from Flipkart founders Sachin Bansal and Binny Bansal, both of whom are former Amazon employees.
However, no official confirmation has come out from both the companies about the proposal.