Flipkart Walmart deal is the most talked about topic in business industry today as Flipkart-Walmart acquisition is the largest acquisition deal in the world in the e-commerce sector. Here are a few pointers about the Flipkart Walmart deal that you must know.
- The industry is abuzz with the deal finalization about the acquisition of Flipkart by Walmart. The deal has been finalized at a valuation of 16 billion dollars. After the deal, the company is set to be valued at around 21 billion dollars.
- Walmart and Alphabet, the parent company of Google, will together hold 77% shares of Flipkart; Walmart alone withhold around 60% and will be the largest shareholder.
- Softbank, the current largest investor of Flipkart, is selling its entire stake of around 20% and will get nearly $4.7 billion, which is 1.5 times of its initial investment of 2.5 billion dollars.
- Sachin Bansal, the co-founder of Flipkart will exit the company completely by selling his entire stake of 5.5%. Binny Bansal and Sachin Bansal started this company together at a Bengaluru apartment in 2007. Binny Bansal will still remain invested in the company as the Group Chief Executive Officer, along with other shareholders like Chinese Internet conglomerate Tencent, Microsoft Corp. and investment firm Tiger Global. Binny Bansal said in the press release, “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,”
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- Walmart will bring a push in the Indian e-commerce market as companies will now be even more alert and insecure about their businesses. Walmart has tried to enter the Indian market since ages but strict FDI rules kept its presence limited to just retail stores. As of now, Walmart has 21 retail stores in India. It will now open around 50 new stores over the next 4-5 years.
- The Flipkart Walmart deal is the biggest acquisition in the history of Walmart, which was pushed personally by its chairman Greg Penner, heir to the multi-billion-dollar fortune of Walton family.
- With the Flipkart – Walmart acquisition, the global fight between Walmart and Amazon will come to India. Walmart will be able to give Flipkart the kind of funds needed to win this fight, and also bring along with it the long-term experience of knowing the retail market, giving Flipkart a formidable push forward.
- Flipkart has a long-term goal of being a publicly listed tech leader by 2019-20 and Walmart is supporting this idea, but an official date for the same has not been announced yet.
The Flipkart Walmart deal, though confirmed by the Softbank CEO – Masayoshi Son, is yet to be announced formally and is eagerly awaited by all.