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Showing posts with label Flipkart. Show all posts
Showing posts with label Flipkart. Show all posts

Wednesday, May 9, 2018

Confirmed: Walmart has acquired a controlling stake in Flipkart

Softbank CEO Masayoshi Son confirms Walmart will buy control of India's Flipkart .Walmart Inc., the world’s largest retailer announced on Wednesday that it will buy 77% initial stake in Flipkart for $16 billion, in what is the world’s largest mergers and acquisitions, which values the Indian ecommerce major at $20.77 billion.

“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,” said Doug McMillon, Walmart’s president and chief executive officer in a statement.

McMillon added that it Flipkart’s earlier investors — Tencent, Tiger Global and Microsoft will continue to be part of the company. “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,” he said.

The remaining 23% of Flipkart will be Flipkart’s co-founder Binny Bansal, Tencent Holdings Limited, Tiger Global Management LLC and Microsoft Corp. SoftBank, which was the largest shareholder in the company will exit, and is expected to have made $4.77 billion for an invest of $2.5 billion eight months ago.

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