The proficients are calling it a leap of faith for Walmart. And that is actually the case for everyone who holds acquaintance with the Flipkart-Walmart deal. Here is the preview for those who are not very much into international news. The speculations for Walmart acquiring a considerable Flipkart share was in the news for some time now. The deal is about to close and the US grocery giant, Walmart is said to have paid a whopping $16 billion to own 77 percent stake in the Indian e-commerce company, Flipkart.
The acquisition may lead Flipkart to take a move to make Flipkart public within four years as per the public filing reported by a major daily journal. The filing also states that shares that are acquired by company’s minority shareholders may have to stage an IPO or initial public offering to close the deal. The current agreement quotes a deal with a whopping $20.8 billion that Walmart has paid to India’s biggest online store. However, there is the caveat in the deal, which is an apparent Insurance policy for the investors (earlier) who were concerned about giving their stakes to the Walmart.
The company’s minority shareholders’ list is a huge one that includes entities like Tencent Holdings, Tiger Global Management, Microsoft, and company co-founder Binny Bansal, who is reported to sold $104 million in share but have a 4.2 percent stake currently.
Binny Bansal who is currently staying with the company as a group CEO is seen to play a great move, while the co-founder Sachin Bansal is leaving the company with $1 billion as per the local reports. Some reports also claim that Sachin Bansal was left with no major choice other than leaving the firm.
SoftBank, Walmart’s another minority shareholder revealed its deal with the Walmart by announcing the deal and the analysis of SoftBank’s quarterly results. The details were announced by SoftBank company CEO Masayoshi Son. Further on the reports, the CEO told that the company has invested through a vision fund and it would see a sizable return on initial investment of $2.5 billion.
Flipkart's coming together with Walmart is expected to be a matter of concern for Amazon after a considerable time frame. Both the companies, i.e. Amazon and Flipkart hold a 35% stake in India’s e-commerce market. The market, in the upcoming future, is expected to grow as big as $200 billion markets that every company would love to get profit share of.
Being a Senior Technical Writer at MobileAppDaily, Neha Baluni loves jotting down her piece of opinion for the advancing technology in mobile app world. Having a journalism background, she is a writer by day and a reader by night. Her passion for writing covers different categories of technical and non-technical genre. In addition to writing, Neha loves traveling a lot.Follow
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