Indian e-commerce market has turned into a battleground over the years with two of the e-majors – Amazon and Flipkart – contesting to grab the top spot. The two have been giving a tough competition to each other in terms of sales, visits and discounting strategies.
And now, the rumours are doing rounds that American retail mammoth Walmart is planning to acquire around 15-20 per cent stake in India’s top e-commerce company Flipkart.
Moreover, the deal between the two is likely to be finalised by March this year, claims a report that appeared in the leading business daily Economic Times.
Media reports even state that a delegation headed by Doug McMillon, President and Chief Executive Officer of Walmart visited Flipkart’s Bengaluru head office last week. The delegation also comprised Walmart’s E-commerce CEO Marc Lore and Judith McKenna, current COO of the company. The minutes of the meeting are not out yet.
Pertinent to mention here that McKenna is all set to assume her new role of President and CEO at Walmart International, effective February 1, 2018.
The deal between Walmart and Flipkart is likely to involve primary and secondary share sales by some of the longstanding investors. If the acquisition deal between the two becomes a reality, it will be the biggest move by Flipkart to take on Amazon in the Indian market. However, the role of Walmart in the deal is uncertain as of now.
Notably, Walmart too has its plans in place to increase its physical store count in India to 70 by 2022 from its current count of 21 Best Price wholesale stores in 9 states. At least 5-7 new Walmart stores are expected to be operational by the end of this year.
Any confirmation either from Walmart or Flipkart is yet to be received. We will share the latest inputs as and when received.
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