Flipkart is sold. It has been sold to Walmart, which is acquiring the Indian e-commerce company after valuing it for $ 20 billion. Walmart is acquiring 77 per cent stake in the Indian company, so it’s getting the controlling rights.
Walmart is an American retail giant, is paying $16 billion to buy 77 per cent stake in Flipkart. The deal values Flipkart at little over $20 billion.
Sachin Bansal, the co-founder the Flipkart, is leaving the company. He has resigned and he is selling his 5.5 per cent stake for little over Rs 6,700 crore. Binny Bansal, another co-founder, is staying back. He is the CEO of Flipkart now.
Binny Basal said, “While eCommerce is still a relatively small part of retail in India, we see great potential to grow. Walmart is the ideal partner for the next phase of our journey, and we look forward to working together in the years ahead to bring our strengths and learnings in retail and eCommerce to the fore.”
Walmart CEO Doug McMillon 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.”
While Walmart is getting 77 per cent stake in Flipkart, the rest is in the hands of a few others, including Binny Bansal. Walmart in a statement said, “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.”
Business Today estimates that the combined Flipkart and Walmart entity will have an annual revenue of $10 billion from India, which makes Walmart the biggest MNC operating in India.
Although Flipkart is now a Walmart brand, pending regulatory approval, it will continue to operate as Flipkart. There will be no significant brand changes, not anytime soon. “While Walmart and Flipkart will leverage the combined strengths of both companies, they will maintain distinct brands and operating structures,” Walmart said in a statement.
A India Today Report.