Flipkart-Walmart deal topic is making news for some days and a new information is making buzz everywhere that Walmart has completed the due diligence required to make this deal. If we believe the reports, Walmart wants to buy 51% share in Flipkart to have the major control over it.
Price associated with the deal
The US retail giant is expecting to crack the deal in the range of $10 billion to $12 billion for the stake that values Flipkart roughly around $20 billion. However, the completion of due diligence doesn’t ensure any confirmation of the deal.
Softbank also looking to sell its share
If Walmart offers a good price, Flipkart’s investor Softbank can also sell its share. Walmart is eyeing for this deal to compete with Amazon in the Indian e-commerce market. This can bring a boost to the sales of Flipkart as Walmart has a great experience and knows the psychology of customers.
What can happen if this deal gets finalized
It is an interesting scenario as Flipkart was started by 2 former Amazon employees who are ruling Indian market now. Amazon has been very active in last few months and wants to capture Indian market by proving multiple benefits for them. To do so, the company has provided Amazon Prime service that helps customers to get fast delivery. Note that Paytm mall has recently raised Rs 2,900 crore from Softbank group and Alibaba group combining.
Companies are trying to do everything that is possible to win Indian customers and this can act in the favour of buyers as competition leads to better service and cheap prices. The issue that Indian market is facing with these deals is that the small businessman is in danger now. These big names create a monopoly in the market and then earn millions by making the small shopkeepers to leave the market.
The probability of Amazon-Flipkart deal is also there which can make the resulting company rule Indian online shopping market single-handed which is not a good thing for other companies such as Paytm, Snapdfeal and Shopkeepers.
Coming few months will decide the future of e-commerce market in India. What impact will this deal have according to you? Do let us know in comments.
