Walmart Aims To Buy Stake In FlipKart

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Walmart Stores Inc, the world’s biggest retailer, is in advance talks of acquiring a minority stake in Flipkart and the deal will probably be finalized by March. Walmart may acquire 15-20 per cent stake in the Flipkart, the Indian e-commerce company. Buying the existing shareholders can also be a part of the investment.

Walmart works on an omni-channel approach and is exploring both the online and offline space. The world’s largest retailer which already had offline presence had announced in August 2016, the acquisition of Jet.com. It is a 13-month-old e-commerce website and with this acquisition, Walmart’s aim was to create a force against the world’s biggest online retailer Amazon.

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Walmart was launched in 2009 in India and has 21 Best Price modern wholesale stores in the country now. In 2014, it launched its B2B online platform and entered the e-commerce segment. This development is based on past when SoftBank showed interest in Flipkart. Softbank was offering to buy shares of Tiger Global, other investors as well as existing and former employees in the e-commerce company. The investment firm was offering to buy shares worth $1.4 billion which roughly values Flipkart in the range of $9-10 billion.

In the secondary round, as part of the new investment, Tiger Global, Accel, IDG and Kalaari along with a few others, were to sell their shares to Softbank whereas the Japanese telecom and internet conglomerate had invested $1.4 billion in Flipkart in August.

Image Courtesy- kiplinger, techcircle

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