The proverbial tennis match between Walmart and Amazon for the Flipkart Group appears to have gone Walmart’s way.
On Monday, May 7, the Wall St. Journal reported that Walmart will acquire a 75% stake in the Indian e-commerce outlet in a deal valued at about $15 billion that is expected to be officially announced sometime this week.
Industry analysts familiar with India’s retail marketplace said the deal would provide Flipkart with an infusion of capital while positioning Walmart for e-commerce growth in the world’s second-largest country by population.
Founded in 2007 by Sachin Bansal and Binny Bansal who are unrelated, the company initially started by selling books. According to its website, Flipkart currently has 100 million users and over the past 11 years and today sells more than 80 million products across more than 80 categories.
In recent weeks, several reports had indicated interest in Flipkart from Walmart and Amazon.