US retailer Walmart Inc on Wednesday acquired 77 per cent stake in Flipkart for about USD 16 billion in its greatest acquisition until date. The deal values the 11-year previous Indian e-commerce agency at USD 20.eight billion.
“India is likely one of the most engaging retail markets on the planet, given its measurement and development fee, and our funding is a chance to accomplice with the corporate that’s main transformation of eCommerce out there,” stated Doug McMillon, Walmart’s President and Chief Government Officer (CEO).
Commenting on the deal, Binny Bansal, Flipkart’s co-founder and group CEO stated, “This funding is of immense significance for India and can assist gas our ambition to deepen our reference to consumers and sellers and to create the following wave of retail in India.”
Bentonville, Arkansas-based Walmart will purchase about 77 per cent stake in Flipkart, Walmart stated in a press release.
Sachin Bansal, who had co-founded Flipkart with Binny Bansal in 2007, would exit the corporate after the deal.
Sachin and Binny, who should not associated and previously labored for Amazon.com Inc, like their US rival started by promoting books once they based Flipkart.
India’s first billion-dollar e-commerce firm, Flipkart, sells eight million merchandise throughout 80-plus classes. It has 100 million registered customers. Walmart additionally plans to pump $2 billion (practically Rs 13,000 crore) as contemporary fairness into Flipkart to strengthen its maintain on the e-commerce agency.