Walmart confirms Flipkart deal
By Retail Technology | Thursday May 10 2018 | UPDATED 23.02.23
In its biggest ever deal, Walmart has beaten off rival Amazon to seal a $16 billion purchase of a 77% Holding in Indian ecommerce giant Flipkart
The remainder of the company will remain in the hands of co-founder Binny Bansal and other shareholders.
Walmart’s acquisition will see it take a firm foothold in the Indian ecommerce market which is expected to be worth as much as $200 billion over the next ten years.
Nicolás Avila, VP of technology, for Globant said: “Amazon is cloning itself in India, while Walmart goes for an acquisition. The overall experience of Walmart in the US relies a lot on their physical retail presence. Merging this experience with a pure digital player like Flipkart will be challenging but very important to cement.”
Act first
Meanwhile, Dan Neiweem, co-founder and principal, for Avionos believes Walmart had to act first before Amazon acquired Flipkart or eroded their market share.
He explained: “By acquiring Flipkart, Walmart has become the leader in ecommerce in India. Amazon has committed $5.5 billion to India, so it was only a matter of time before they took over as the leader. If Walmart didn’t make this move now, they would be likely spend way more to get into the market."
