A day after U.S. retail giant Walmart struck its largest deal with an investment in Indian online marketplace Flipkart, a right-wing Hindu group that fears small traders will suffer staged a protest in New Delhi.
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.
One of Flipkart’s Co-Founders, Sachin Bansal, is expected to sell off his entire stake in the company to Walmart when the deal goes through due to doubts about changes to the business’ operating structure.
The Flipkart-Walmart deal which is expect to be completed over the next few days has now got the traders worried, they have sought the intervention of Commerce & Industry Minister Suresh Prabhu in the matter.
As Flipkart gets ready to sign multi-billion dollar deal with Walmart, All India Online Vendors’ Association (AIOVA), a body representing sellers has sought clarity from the etailer regarding their future.
Flipkart’s board has approved a deal to sell an equity stake of about 75 percent in the company to a group led by Walmart Inc for about $15 billion, Bloomberg reported on Friday, citing unnamed sources.