Retail giant Walmart successfully culminated the negotiation of more than 20 months and made the world’s biggest e-commerce purchase, acquired India’s largest online retailer Flipkart in $16 billion. Walmart would own 77% stakes of Flipkart for $16 billion, this deal values the Flipkart at whopping $21 billion.
“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 the transformation of e-commerce in the market,” Walmart president Doug McMillon said.
Flipkart was founded in 2007 by two unrelated Bansal, Sachin and Binny both were the employees of Amazon.
Initially, Flipkart operated as online bookstore just like Amazon, now it sells everything from electronic items to clothes, shoes, and furniture.
The e-commerce market in India at hiking swiftly, India hit $21 billion sells last year, according to marketing research company Forrester. With the population of over 1.25 billion and excessive increase in internet usage, it is expected to rise immensely.
The brand Flipkart will remain distinct and unaffected with Walmart as the company said in a press release.
Many of the Flipkart investors will retain their stakes including the company’s co-founder Binny Bansal, whereas co-founder Sachin Bansal exits.
The deal was in talks since 2016, and the major purpose of the acquisition to compete with Amazon, which is rapidly expanding its reach in Indian e-tailing market.
This deal is expected to be proved as a big enhancement of the e-commerce sector in India.