Walmart to invest in India’s Flipkart
US-based retail giant Walmart has confirmed that it has signed definitive agreements to become the largest shareholder in the Indian e-commerce player Flipkart.
In a statement issued today (9 May), Walmart said that – subject to regulatory approval in India – it will pay approximately $16bn for an initial stake of approximately 77% in Flipkart. The remainder of the business will be held by some of Flipkart’s existing shareholders, including Flipkart co-founder Binny Bansal, Tencent Holdings Limited, Tiger Global Management LLC and Microsoft.
“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,” said Doug McMillon, Walmart’s president and chief executive officer.
“As a company, we are transforming globally to meet and exceed the needs of customers and we look forward to working with Flipkart to grow in this critical market. We are also excited to be doing this with Tencent, Tiger Global and Microsoft, which will be key strategic and technology partners.”