World’s largest e-commerce deal! Walmart buys Flipkart, here's what US retailer's vision in India is
Walmart has acquired 77% stake in Bengaluru-based online shopping portal Flipkart for a valuation of around $21 billion.
The largest retailer in the US, Walmart has acquired India’s biggest e-retailer Flipkart on Wednesday for a behemoth $16 billion, making it the world’s largest e-commerce deal. Walmart has acquired 77% stake in Bengaluru-based online shopping portal at a valuation of around $21 billion.
Walmart, which failed to make an entry in India's in offline retail space with any kind of success, can now sell its products online to 1.3 billion people in the country.
The craze for online shopping in India is what is boosting growth and the potential is massive going forward. The partnering of these two companies will make a valuable contribution to the country as well.
Doug McMillon, Walmart’s president and chief executive office said, “India is one of the most attractive retail markets in the world, given its size and growth rate, and our investment is an opportunity to partner with the company that is leading transformation of eCommerce in the market.”
In it’s release, this is how Walmart will contribute in India with Flipkart purchase.
Walmart said, “As Walmart scales in India, the company will continue to partner to create sustained economic growth across agriculture, food and retail.”
Plans are to create jobs through development of supply chain system, commercial opportunity and direct employment.
Supporting small business and ‘Make in India,’ through direct procurement as well as increased opportunities for exports through global sourcing and eCommerce. Among other initiatives, Walmart will partner with kirana owners and members to help modernize their retail practices and adopt digital payment technologies.
Support farmers and develop supply chains through local sourcing and improved market access.
Reduced food waste by improving waste management practices and investing in supply chains, especially cold storage.
Walmart said, “Future investments will support national initiatives and will bring sustainable benefits to the country.”