Walmart has completed its $16 billion acquisition of India’s e-commerce giant Flipkart.
With the completion of the investment, Walmart now holds approximately 77% of Flipkart. The remainder of the business is held by other shareholders, including Flipkart co-founder Binny Bansal, Tencent, Tiger Global and Microsoft. Moving forward, Flipkart’s financials will be reported as part of Walmart’s international business segment.
Walmart’s investment includes $2 billion of new equity funding to help accelerate the growth of the Flipkart business. Both companies will retain their unique brands and operating structures in India.
“Walmart and Flipkart will achieve more together than each of us could accomplish separately to contribute to the economic growth of India, creating a strong local business powered by Walmart,” said Judith McKenna, president and CEO of Walmart international. “Our investment will benefit India by providing quality, affordable goods for customers, while creating new skilled jobs and opportunities for suppliers. As a company, we are transforming globally to make life even easier for customers, and we are delighted to learn from, contribute to and work with Flipkart to grow in India, one of the fastest-growing and most attractive retail markets in world.”
Flipkart’s existing management team will continue to lead the business. Tencent Holdings Limited and Tiger Global Management will remain represented on the Flipkart board, in addition to independent board members, and will be joined by new members from Walmart.