Walmart to buy 73% of Flipkart Share : In a move seen as a precursor to US retail giant Walmart acquiring a majority stake in Flipkart, the Indian e-commerce player has bought back shares from investors in its Singapore-based parent to regain private limited status in the country.
- Walmart is gearing up to buy Flipkart in a $14.6-$16 billion deal, according to a recent report. so it is finally confirm.
- Walmart would gain a 73% share in the company, and most of its initial investment is expected to go towards a grocery supply chain.
- Alphabet Inc. may be contributing $3 billion to the investment.
- both company Walmart & Alphabet US based company.
- Alphabet is Google’s parent company .
Everything has been finalized… the papers have been signed by both the parties,source by Business Standard
The sources indicated that Walmart had valued Flipkart at between $20 and $22 billion. Google’s parent company Alphabet Inc. is said to be participating in the deal with approx $3 billion investment.
Flipkart’s CEO Kalyan Krishnamurthy, and other top-level staff, are expected to maintain their roles.
Walmart would maintain a focus on the grocery market, said the sources, suggesting that almost 50% of Walmart’s initial investment would be funneled into building a food and grocery supply chain.
According to estimates, India had 60 million online shoppers in 2016 — 14% of those with internet access in the nation. It’s anticipated that more than 50% of those with internet access will shop online by 2026.
US retailer Amazon is Flipkart’s largest online competitor in India, though Flipkart has the biggest market share. Amazon is the biggest online store in world but Amazon was also reportedly interested in a Flipkart buyout, which would give it control of around 90% of the market.
If the Walmart deal goes through, however, Amazon and Flipkart would remain competitors in india — which would likely be the best result for consumers.
We’ve reached out to Flipkart and Walmart on the matter and will update this article should we receive any information.