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Flipkart Sold To Walmart: Deal Worth $16 Billion

Flipkart has been taken over by the American Multinational Retail Corporation – Walmart which acquired the Indian e-commerce company valued for $20 billion. 77 percent of the stake of an Indian company is now in the hands of Walmart which means it holds the controlling power. In upcoming days, some of the stakes may offer for sale and in addition to that, rumors are flying that the parent company of Google – Alphabet catches sight of it. Walmart will hold the majority ownership.

Here are some of the key points about the news that Flipkart sold to Walmart.

Flipkart Sold

  • For 77% of a stake, Walmart is paying $16 billion dollars for which the deal value is $20 billion.
  • As a part of the deal, the co-founder of Flipkart (Sachin Bansal) stands down. He is selling his 5.5% stake worth Rs.6700 crore at the time he steps aside.
  • Binny Bansal, other co-founder holds back the office and he is the CEO right now.
  • To express the opinion about the deal, Binny Bansal mentioned “According to the retail market in India, E-commerce is relatively a small one and so we forecast a great success in the upcoming period. For the subsequent development, Walmart is our supreme associate and in the near future we will work together with all our strength and shine in the retail and E-commerce in India ”.
  • Walmart decides to enter the Indian E-commerce by purchasing Flipkart – the most user-friendly Indian E-commerce company. The company CEO Doug McMillon states “India is one of the fascinating retail markets in the world and our investment pays an opportunity to work with other leading transformation of E-commerce market”.
  • Walmart holds 77% of the stake and the rest in the hands of others. Walmart mentioned in a statement “The remainder of the business will be held by the existing shareholders which include the current CEO Binny Bansal, Tencent Holdings Limited, Microsoft Corp and Tiger Global Management LLC.”
Some More Key Points:
  • Before the hand, there was a talk that Alphabet which owns Google will be part of this, But it hasn’t happened. But it may happen, As the report of Walmart says that they will sell some of its stakes now but holds the majority.
  • According to business today, the unified Walmart and Flipkart entity will have revenue of $10 billion from India then it will be the biggest entity in India.
  • Walmart thought of buying Amazon – “The rapidly growing market”, but they end up by buying the Flipkart, through which they keep themselves competitive in the e-retail space.
  • Even though Flipkart sold to Walmart brand that needs some regulatory approval, no change in the brand.

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