Firms Guide Walmart's $16B Deal To Become Flipkart's Top Shareholder

Firms Guide Walmart's $16B Deal To Become Flipkart's Top Shareholder

The company retreated from Britain, selling a controlling stake in its British arm ASDA to J Sainsbury.

Krish Iyer, Walmart India's president and CEO, on Thursday told Press Trust of India: "We now have 21 stores and plan to open 50 stores in four to five years". In the last fiscal year, Flipkart recorded $4.6bn in sales - an increase of over 50 percent from the previous year. The latter has been a longstanding legal adviser to Walmart on a variety of matters, from high-stakes litigation to bribery allegations involving a subsidiary in Mexico. "Plans are on track", Walmart India President and CEO Krish Iyer said at a select media roundtable.

Now, however, Walmart has purchased 77% stake in Flipkart, eBay will no longer own a piece Flipkartp and will end its strategic relationship with the e-commerce firm.

Flipkart is, in some ways, an echo of Amazon.

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Flipkart founders Sachin Bansal and Binny Bansal (not related) were billionaires in 2015 when Flipkart was valued at $16 billion. Naspers initially invested in Flipkart in August 2012 and its cumulative investment to the point of sale amounts to $616 million. It now allows for a variety of payments, from credit cards to gift cards to direct bank transfers.

Eventually, both quit to launch Flipkart. Flipkart now has over 100 million registered users and more than 100,000 registered sellers. And if India is to see its own retail businesses reach the kind of scale one sees in China, with retail chains of thousands of stores, an argument can be made as follows: unshackle the local business houses and open up FDI in multi-brand retail and see them grow at the proverbial 10X. Walmart India will work on expanding its Best Price Cash and Carry business in India which already amounts to 21 stores along with a fulfilment centre across 19 cities.

Walmart yesterday stated in the press release, "The remainder of the business will be held by some of Flipkart's existing shareholders, including Flipkart co-founder Binny Bansal, Tencent Holdings Limited, Tiger Global Management LLC and Microsoft Corp".

Dressed in blue jeans and a black Flipkart T-shirt, Mr. McMillon said India would have more than two players in the e-commerce market, a reference to Flipkart's chief competitor, Amazon.

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The deal hasn't gone down well with the tens of millions of small store owners who for years used political muscle to slow the arrival of global retailers.

"So we will continue to focus and stay invested and growing in this market (India) for now".

The global stakes for both Amazon and Walmart are high.

Besides, Khandelwal said traders are facing several problems with regard to GST portal, adding that the traders body has submitted representations to the finance ministry in this regard. If I just go back 10 years, it's just awesome how we started, what we did.

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Shardul Amarchand Mangaldas corporate head and partner Raghubir Menon led for Walmart. In Mexico, Canada and Japan, it's won shoppers over time.

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