Walmart & Flipkart Deal – Flipkart, the country’s largest e-commerce company, sold out to Walmart today. Walmart and Flipkart’s top executives at the Town Hall meeting in Bengaluru agreed to sign the acquisition deal for approximately $16 billion. Softbank CEO Masayoshi Son has also confirmed this in Tokyo.
In this meeting, top executives of the two companies including Walmart CEO Doug McMillan were also present. Subject to regulatory approval in India, after this deal, Walmart will take control of approximately 77 percent in Flipkart.
The remainder of the business will remain in operation under the leadership of one of the founders Binny Bansal. However, the second founder, Sachin Bansal, has decided to leave the company by selling out his full 5.5% stake in the company.
Speaking on Flipkart acquisition Walmart CEO, Doug McMillon 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 the transformation of eCommerce in the market. As a company, we are transforming globally to meet and exceed the needs of customers and we look forward to working with Flipkart to grow in this critical market. We are also excited to be doing this with Tencent, Tiger Global and Microsoft, which will be key strategic and technology partners. 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, Flipkart’s Co-founder and Group CEO 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. While eCommerce is still a relatively small part of retail in India, we see great potential to grow. Walmart is the ideal partner for the next phase of our journey, and we look forward to working together in the years ahead to bring our strengths and learnings in retail and eCommerce to the fore.
With this acquisition, Walmart wants to connect Indian customers with local grocery stores. According to a source familiar with Walmart’s future plans, Walmart is investing heavily on the techniques of digital payments and other areas.