Walmart Inc. on Wednesday acquired a 77% stake in Flipkart for about $16 billion. India’s first billion-dollar e-commerce company, Flipkart, sells 8 million products across 80-plus categories. It has 100 million registered users.
For Walmart, the Flipkart deal will offer a big advantage in terms of presence in the Indian e-commerce market. Acquiring a stake in Flipkart will help Walmart tap into India’s retail market without building stores. India is the next big potential prize for global retailers after the US and China, where foreign retailers have made little progress against Alibaba Group Holding. “Flipkart is key to a global e-commerce strategy,” said Arvind Singhal, chairman of the New Delhi-based retail consultancy Technopak Advisors. “Walmart clearly doesn’t want to be left behind in the race as India is a critical piece.”
Flipkart will also benefit from deep pockets of Walmart as well as the US retail giant’s decades of retailing expertise in skills from logistics to marketing.
— Walmart Newsroom (@WalmartNewsroom) May 9, 2018
Complete Source: NDTV
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