The Walmart-Flipkart Deal has marked the largest ever e-commerce deal in the world. Walmart acquires 77 percent in Flipkart for $16 Billion.
The Walmart-Flipkart $16 Billion Deal
After weeks of speculation, US retail giant Walmart-Flipkart deal happens when Walmart finally acquires a 77 percent stake in Flipkart for a whopping $16 Billion, valuing Flipkart at $21 Billion. Walmart has plans of supporting Flipkart’s ambition of going public, but they haven’t mentioned a specific date. Binny Bansal, the Co-Founder of Flipkart along with Microsoft, Tiger Global, and Tencent Holdings will be retaining part of their stake. However, Softbank will take away nearly $4.7 Billion. The most bittersweet moment is for the Co-Founder of Flipkart, Sachin Bansal, who is leaving the company by selling his entire stake of 5.5 percent and walks away with billion dollars.
According to some experts, the Walmart-Flipkart deal not only validates the potential of the Indian retail market but also gears up a showdown between the contemporaries like Amazon, Walmart, and Alibaba. This will in turn make India the ultimate battleground of retail global dominance. By the year 2026, Indian retail is expected to be a $200 Billion market. Basically, the Big Billion Walmart-Flipkart deal creates a big debate on the India Development Debate.
The Walmart-Flipkart Deal: Sachin Bansal Exit the Company
Sachin Bansal, who had co-founded Flipkart with Binny Bansal in 2007, is now leaving the company after the deal, has now plans of catching up on gaming and brushing up his coding skills. He wants to take time to finish a few personal projects that are pending. On the other hand, Binny Bansal will stay on.
Sachin Bansal wrote in a Facebook post, “I’ll be taking some long time off and focus on finishing a few personal projects which I haven’t been able to find time for. Will catch up on gaming (and see what kids are playing these days) and brush up on my coding skills.
“Sadly my work here is done and after 10 years, it’s time to hand over the baton and move on from Flipkart. . . But I’ll be watching and cheering from the outside — Flipsters, you better continue to do a good job!”
“We took on some of the biggest challenges and solved many complex problems for India,” Bansal reminisced.
What the Walmart CEO Doug McMillon Has to Say?
Walmart CEO Doug McMillion, says after acquiring 77% stakes in Flipkart that the company’s name won’t be changed to ‘Walkart’. He also added that there won’t be a bureaucracy in the US which will try running the company. Walmart is currently excited about helping farmers make more money and reduce food wastage. McMillion also said that the brick & mortar stores and online retail will be run separately for the time being. He concluded by saying that China and India continue to be priority market for us.