India’s biggest e-commerce deal is about to get final as the final acquisition may take place as early as next week. If reports are believed, Walmart is acquiring 51 percent stake in Flipkart. Walmart is doing so to compete with Amazon in Indian online shopping market. Indian e-commerce market is expected to reach $200 billion by 2026 and it has been attracting big investors.
Talks about this deal have been going on from long and we reported about the final due diligence that Walmart cleared for this agreement. After getting the major stake in Flipkart, Walmart is expected to invest more in the company to add value to the reputation of Flipkart.
Also Read: Walmart Completes Due Diligence To Buy Flipkart, Here’s What Can Happen If This Deal Gets Finalized
SoftBank which holds the one-fifth of the total stake in Flipkart has been the major hurdle in this deal and it seems that everything is fine now. However, it has not been clarified that SoftBank will sell its part to Walmart.
According to the reports, Flipkart’s founders Sachin and Binny Bansal, are also looking to sell their stakes which are around 5 % each. Walmart is likely to retain all the top executives of Flipkart including the CEO- Kalyan Krishnamurthy.
Amazon had also tried to buy some stakes in Flipkart but it was turned down by eBay. eBay had invested $500 million in Flipkart in October 2017. eBay also has the right to take back control of the eBay India if Flipkart gets acquired by anyone. Currently, Flipkart is owned by multiple partners including its founders, SoftBank, Tiger Global, Naspers, and Accel. Walmart-Flipkart deal is likely to value Flipkart at around $18 billion.
