US-based retail giant Walmart has now completed the deal with Flipkart to hold its 77 percent stake. After the closure, Flipkart’s future financial activities will be reported by Walmart International Business.
Besides the acquisition part, Walmart also infused USD 2 billion of equity funding in Flipkart business.
In the press release company said, “With the completion of the investment, Walmart now holds approximately 77 per cent of Flipkart. The remainder of the business is held by other shareholders, including Flipkart co-founder Binny Bansal, Tencent, Tiger Global and Microsoft Corp,”.
It added that Flipkart‘s existing management team will continue to lead the business.
“Our investment will benefit India by providing quality, affordable goods for customers, while creating new skilled jobs and opportunities for suppliers… 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,” Judith McKenna, president and CEO of Walmart International, said.
Binny Bansal, Flipkart co-founder, and CEO said, “by combining Walmart’s omnichannel retail expertise, supply-chain knowledge and financial strength with Flipkart’s talent, technology, and local insights, we are confident that together we can drive the next wave of retail in India”.
This is also the first time that a US company bought out an entire online platform in India, driven by the ambition to capitalize its $16 Bn investment in a country boasting over 1.3 billion inhabitants.