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.
Indian e-commerce firm Flipkart's board is yet to finalise a deal to sell a stake to Walmart Inc, two sources with direct knowledge of the matter said on Friday, adding that a deal could just be days away.
A recent study from Astound Insights claims that while the Seattle-based e-commerce giant is growing in popularity in the fashion sector, its failings leave the door open for other retailers to expand their market share.