Walmart’s deal with Flipkart to acquire 77 per cent stake in the Indian e-commerce website is facing opposition from traders, while industry body ASSOCHAM has termed it as a success of Indian start-ups.
Walmart Inc has agreed to pay $16 billion for a roughly 77 percent stake in Indian online shopping site Flipkart, the U.S. retailer’s biggest foreign investment ever as it battles rival Amazon.com Inc.
Amazon.com more than doubled its profit on Thursday and predicted strong spring results as the world’s biggest online retailer raised the price for U.S. Prime subscribers, and added U.S. football games.
Amazon expects groceries and household products to account for over half of its business in India in the next five years, as it moves to broaden offerings in the segment and foray into areas such as fresh produce.
Walmart is likely to reach a deal to buy a majority stake in e-commerce player Flipkart by the end of June in what could be the U.S. retail giant's biggest acquisition of an online business, according to two sources.
Walmart completed a thorough due diligence process on e-commerce firm Flipkart this week, two sources said, as the U.S. retail giant looks to take a controlling stake of 51 percent or more in the Indian company.
Amazon chief Jeff Bezos is now the world's richest person, having snatched the top spot from Microsoft founder Bill Gates who slips to second place, according to Forbes magazine's annual billionaires list.
Walmart is in talks to purchase a stake of more than 40% in Indian e-commerce firm Flipkart, a direct challenge to Amazon.com Inc in Asia's third-largest economy, two sources familiar with the matter said on Friday.