Thanks to Flipkart, India now a battleground for Walmart vs Amazon

  • Thanks to Flipkart, India now a battleground for Walmart vs Amazon

Thanks to Flipkart, India now a battleground for Walmart vs Amazon

There are also reports that Amazon made a formal bid little higher than Walmart to buy the majority stake in Flipkart.

As per Bloomberg's report, Flipkart approved Walmart's offer to acquire 75% at a valuation of $15 billion. Close of the deal is expected in 10 days.

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The filing, which was sourced by data platform Paper.vc, claimed that the move will also help Flipkart convert itself into a private company under Singapore law. "We expect Walmart to be in this journey with Flipkart (if the deal does goes through) for the long haul and the one where both parties join hands to bring respective expertise".

Despite the board approval, terms of the deal could still change and a deal isn't certain yet.

Walmart stock traded down about 0.2% early Friday, at $86.06 in a 52-week range of $73.13 to $109.98.

According to reports, Amazon's offer was likely to be on par with Walmart, but Amazon is seeking a smaller share in the firm, while Walmart is looking for more than 80% stakes.

If finished, the deal will offer Bentonville, Arkansas-based Walmart a foremost position in the growing market of 1.3 billion people and a chance to remake its reputation online.

Flipkart, together with its fashion units Myntra and Jabong, controls almost 40 per cent of India's online retail market, while Amazon is a close second with a 31 per cent share, according to data from research firm Forrester.

The filing, which was sourced by data platform Paper.vc, claimed that the move will also help Flipkart convert itself into a private company under Singapore law and values the Bengaluru-based firm at a whopping United States dollars 17.69 billion.

"Flipkart is key to a global e-commerce strategy", said Arvind Singhal, chairman of the New Delhi-based retail consultancy Technopak Advisors. However, in China, foreign companies have been competing toughly against Alibaba.

Flipkart and Alphabet did not immediately respond to requests for comment.

A successful move by Amazon to grab Flipkart would likely send Walmart back to the drawing board when it comes to India, retail consultants and analysts said.

IDG Ventures has exited the holdings of two of its funds including its domestic fund (Pandara Trust Scheme), but remains a shareholder via one of its overseas fund entities. It is already the most valuable startup in India. Although Walmart plans to open another 50 Best Price stores, the addition of Flipkart would dramatically speed up market growth in India.