Walmart is reportedly in talks to buy a stake of more than 40% of Indian e-commerce firm Flipkart, a direct challenger to Amazon.com in India, according to a recent Reuters report.
In what was termed to be one of its biggest overseas deals, Walmart is looking at buying new and existing shares in Flipkart. Terms under discussion were not revealed but Flipkart would be valued at more than $12 billion, according to the report.
A deal with Walmart would give Flipkart resources in its fight against Amazon, which has committed to investing $5 billion in India as it expands, including into online grocery deliveries, according to the report.
Besides its own e-commerce site, Flipkart owns two fashion portals and is said to control nearly 40% of India’s online retail, ahead of Amazon, according to estimates by research firm Forrester. It is also looking into expanding into grocery deliveries.
Last month, Walmart partnered with Japan’s Rakuten Inc., and initiatives include online grocery deliveries in Japan through a Walmart retail subsidiary.