Sat, 12 May 2018

Walmart brings rivalry with Amazon to India

by Trepup

Walmart brings rivalry with Amazon to India

On Wednesday, Walmart acquired 77% stake in Flipkart – India’s largest online retailer – for USD 16 billion, making it the biggest ecommerce deal in the world and Walmart’s biggest foreign investment.

While USD 2 billion is the actual investment in the company, the rest is being used to buy out other stakeholders.

Effectively, Softbank will exit Flipkart, and the business will be held by Walmart, co-founder Binny Bansal, Tencent Holdings, Tiger Global Management and Microsoft.

Although Wall Street reacted negatively to the announcement, Doug McMillon, Walmart’s president and chief executive officer 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 transformation of ecommerce in the market”.

McMillon also said that Tencent, Tiger Global and Microsoft will be key strategic and technology partners as they leverage combined strengths of the companies, while maintaining distinct brands and operating structures.

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