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Walmart completes acquisition of India’s Flipkart

$16 billion deal gives Walmart huge online opportunity in burgeoning economy

Michael Browne, Executive Editor

August 20, 2018

2 Min Read
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Walmart Inc. and Flipkart Group this weekend announced the closing of the $16 billion deal that makes Walmart the largest shareholder in Flipkart, with 77% of shares in the India-based e-commerce company.

The deal was first revealed back in May and closed after receiving the necessary approvals.

Doug_McMillon_Walmart_Binny_Bansal_Flipkart_0.pngWalmart CEO Doug McMillon and Flipkart co-founder Binny Bansal shake on it.

“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 is India’s top e-commerce player, ahead of No. 2 Amazon. Founded in 2007, Flipkart brings to the table a powerful technology foundation, including artificial intelligence, and leadership in such market segments as electronics, large appliances, mobile, and fashion and apparel. The company’s supply chain arm, eKart, serves more than 800 cities and makes 500,000 deliveries daily.

Related:Walmart seizes on Flipkart’s e-commerce potential

According to the company, the Flipkart investment transforms Walmart’s position in a country with more than 1.3 billion people, strong GDP growth, a growing middle class and significant runway for smartphone, internet and e-commerce penetration. As Walmart scales in India, the company will continue to partner to create sustained economic growth across agriculture, food and retail. Future investments by Walmart will support national initiatives and will bring sustainable benefits in jobs creation, supporting small businesses, supporting farmers and supply chain development and reducing food waste.

Flipkart’s existing management team will continue to lead the business. Tencent Holdings Limited and Tiger Global Management LLC will remain represented on the Flipkart board, in addition to independent board members, and will be joined by new members from Walmart. The board will work to maintain Flipkart’s core values and entrepreneurial spirit, while ensuring it has strategic and competitive advantages, according to the two companies.

Outside of Walmart’s shares, the remainder of the business is held by Flipkart co-founder Binny Bansal, Tencent, Tiger Global and Microsoft Corp. Moving forward, Flipkart’s financials will be reported as part of Walmart’s International business segment.

Related:Kroger partners with China e-commerce giant Alibaba

About the Author

Michael Browne

Executive Editor, Supermarket News

Michael Browne joined Supermarket News in 2018 after serving in managing and executive editor capacities at leading B2B media brands including Convenience Store NewsLicense Global and Travel Agent. He also previously served as content production manager for print and digital in the Business Intelligence division of Informa, parent company of Supermarket News and Nation’s Restaurant News.

As executive editor, Mike oversees the editorial content of supermarketnews.com as well as the monthly print publication. He also directs all content-based brand-related projects including the annual Top 75 Retailers report, Category Guide, Retailer of the Year, research surveys and special reports, as well as podcast and webinar content. Mike has also presented and moderated at industry events.

In addition to the positions mentioned above, Mike has also worked as a writer and/or editor for special projects at American Legal Media (ALM), managing editor for Tobacco International, special projects editor at American Banker • Bond Buyer, and as production editor for Bank Technology News and other related financial magazines and journals published by Faulkner & Gray.

A graduate of Fordham University, Mike is based in New York City, where he was born and raised.

Contact Mike at [email protected] or follow him on Twitter and LinkedIn.

 

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