E-COMMERCE
Walmart to invest in Flipkart Group
US MULTINATIONAL retail
corporation Walmart Inc has signed
definitive agreements to become
the largest shareholder in Indian
e-commerce company Flipkart Group.
According to the company,
the investment will help accelerate
Flipkart's customer-focused mission to
transform commerce in India through
technology and underscores Walmart’s
commitment to sustained job creation
and investment in India.
Subject to regulatory approval in
India, Walmart will pay approximately
US$16 billion for an initial stake of
approximately 77% in Flipkart. The
remainder of the business will be
held by some of Flipkart’s existing
shareholders, including Flipkart
co-founder Binny Bansal, Tencent
Holdings, Tiger Global Management
and Microsoft Corp. While the
immediate focus will be on serving
customers and growing the business,
Walmart said it supports Flipkart’s
ambition to transition into a publicly-
listed, majority-owned subsidiary in the
future.
“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 e-commerce in the market,” said
Doug McMillon, Walmart’s president
and CEO. “As a company, we are
transforming globally to meet and
exceed the needs of customers and we
look forward to working with Flipkart
to grow in this critical market. We
are also excited to be doing this with
Tencent, Tiger Global and Microsoft,
which will be key strategic and
technology partners. We are confident
this group will provide Flipkart with
enhanced strategic and competitive
advantage. Our investment will benefit
India, providing quality, affordable
goods for customers while creating new
skilled jobs and fresh opportunities for
small suppliers, farmers and women
entrepreneurs.”
Binny Bansal, Flipkart’s co-
founder and group CEO, add