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11May By Lavina TolaniNo Comments

News

Walmart to Open 50 New Stores in India in Next 4-5 yrs

Just after a day of officially announcing the $16 billion dollar deal in India's largest e-commerce unicorn Flipkart, Walmart Inc on Thursday has said that it will continue to grow its wholesale cash-and-carry business by adding 50 new stores in the next four-five years. US mammoth Walmart which so far had been handicapped by India’s retail policy that does not allow overseas companies to sell directly to consumers will now have an online presence, all thanks to Flipkart. Walmart India President and CEO Krish Iyer said, We currently have 21 stores and plan to open 50 stores in 4 to 5 years. Plans are on track. We have a pipeline of 20 stores and we expect to open 5 stores in the current year and then pick up the pace and eventually start opening 12-15 stores a year. Meanwhile, Doug...

SoftBank Undecided on Selling its 22% Stake in Flipkart

11May By Press Trust of IndiaNo Comments

News

SoftBank Undecided on Selling its 22% Stake in Flipkart

New Delhi: SoftBank founder Masayoshi Son yet not decided to sell its 20-22% stake in Flipkart to Walmart Inc., sources close to the company told to Pixr8 News. After seeing the valuation of the company, Masayoshi Son is in dilemma and will take a call in the next 7-10 days on whether to exit India’s biggest online retailer or stay invested for a long time. If SoftBank decides not to sell its stake then Walmart left with about 55% stake of Flipkart. All other significant shareholders like Naspers, venture fund Accel Partners and eBay had confirmed selling their shares in Flipkart to Walmart. Though on Wednesday, Us retail giant Walmart Inc has announced that it will pay about $16 billion to buy 77% stake in Flipkart. A statement issued by Walmart identified Flipkart co-founder Binny B...

World’s Biggest E-Commerce Acquisitions At A Glance

11May By Lavina TolaniNo Comments

ANALYSIS

World’s Biggest E-Commerce Acquisitions At A Glance

The deal is done and we are still digesting the news: Walmart. Inc has officially acquired Flipkart for $16 billion in a deal that soared the valuation of Indian e-commerce platform to over $20 billion, making it the biggest e-commerce acquisition ever globally. The brick-and-mortar company acquired 77% of the Indian e-tail business. While the world is going gaga over Walmart Flipkart Acquisition, we want to bring your attention to other behemoth acquisitions that have shaped e-commerce landscape in the manner we know of it today. Chewy-PetSmart ( $3.35 billion) Last Year, US E-commerce Giant Chewy which majorly deals in pet food and other pet-related products acquired a retailer mammoth PetSmart for whopping $3.35 billion. This was considered the world's bigge...

Flipkart CEO confirms sellers about no change in operating processes

11May By Lavina TolaniNo Comments

News

Flipkart CEO confirms sellers about no change in operating processes

While the world hasn't got over with mega e-commerce acquisition of leading giants, Flipkart CEO Kalyan Krishnamurthy has reached out to sellers on its platform reassuring that there will be no changes in the operating process of Bengaluru based firm post $16 billion acquisition deal with US retail major Walmart. Krishnamurthy has said that the company will continue to focus on making sellers succeed adopting the "same vigour as in recent years". Flipkart and Walmart will maintain distinct brands and operating structures post the investment, the CEO said while reinforcing that Flipkart will continue to remain a marketplace where sellers from around the country can connect with customers. The Bentonville, Arkansas-based retail mammoth Walmart Inc took the world to storm after it of...

Walmart Raises $5B Revolving Credit to Fund Flipkart Acquisition Deal

11May By Lavina TolaniNo Comments

News

Walmart Raises $5B Revolving Credit to Fund Flipkart Acquisition Deal

A number of monetary corporations including JPMorgan Chase and Barclays are offering $5 billion financing to Walmart that will help the American giant fund its $16 billion acquisition of Indian e-commerce unicorn Flipkart. The credit line involved would be one of the largest revolving credit facilities in the recent times as it is priced between 300-400 basis points over London Interbank Offered Rate. The facility amount will be secured against the balance sheet of Flipkart and its shares will have a tenure of 18 months. The proposed revolving facility is an arrangement that allows buying company to facilitate the immediate acquisition financing requirements while the loans are secured against the balance sheet of the target company of its share price. "Walmart has very strong ban...

Future Group Denies Selling 10% Stakes Amidst Market Rumours

10May By Lavina TolaniNo Comments

News

Future Group Denies Selling 10% Stakes Amidst Market Rumours

Indian market bolted a notch higher when a speculated news regarding World's biggest brick and mortar, Future Group selling its 10 stakes to a leading global retailer surfaced in mid-afternoon today. Meanwhile, within stock market to the company witnessed a gain of 5 percent. The scrip which was at 12 percent at 10:02 am rose by 6.60 percent to Rs. 60.60 on the BSE. The speculation came amidst a clarification sought by stock exchanges into a news report that quoted Future Group founder Kishore Biyani saying, "he will sell a minority stake to the strongest global retailer” in the retail giant." However, in the new clarifications, Future Group companies have stated that there is no decision taken in the regard. The ongoing rumours have come in the wake of Flipkart-Walmart deal which...

These Flipkart Employees Become Instant Millionaire After Walmart Deal

10May By Sheldan RungasamyNo Comments

News

These Flipkart Employees Become Instant Millionaire After Walmart Deal

While most Indians reacted with contempt to the news of the acquisition deal of Bengaluru-based Flipkart by Arkansas-based retail giant Walmart, many Flipkart employees must be in the seventh of heavens right now. Indeed, after the $16 billion acquisition for 77% stake, several employees are set to become millionaires from the deal as large payouts in the form of Employee Stock Option Plan (ESOP) since the company’s valuation raised from $15 billion to $20 billion. Speaking before the acquisition deal was confirmed, a Flipkart employee said, If this deal materializes, it will give a strong value to the concept of ESOPs, something that other startups may like to emulate. They will have the hope that even their companies will have an IPO or get big investors and give them a chance to ...

eBay to Relaunch its Operations in India Without Flipkart

10May By Sheldan RungasamyNo Comments

News

eBay to Relaunch its Operations in India Without Flipkart

eBay, the California-based online marketplace announced its decision to terminate its strategic partnership with Indian e-commerce Flipkart in an effort to relaunch eBay India with a differentiated offer to focus on cross-border trade, the company said in a statement released on Wednesday. The announcement comes few hours after reports of the confirmation of the acquisition deal between Flipkart and US-based brick-and-mortar giant Walmart as eBay India sold its shares it bought last year during a funding round of $1.4 billion in partnership with Microsoft and Tencent where the online marketplace poured $500 million in the Indian e-commerce in return for shares. Yesterday, eBay sold all its remaining shares in Flipkart to the deep pocketed Walmart for $1.1 billion. "Following the clos...

Now Its Official! Walmart Acquires 77% of Flipkart for $16 Billion

9May By Sheldan RungasamyNo Comments

ACQUISITION

Now Its Official! Walmart Acquires 77% of Flipkart for $16 Billion

Walmart. Inc has officially acquired Flipkart for $16 billion in a deal that soared the valuation of Indian e-commerce platform to over $20 billion, making it the biggest e-commerce acquisition ever globally. The brick-and-mortar company acquired 77% of the Indian e-tail business. The news was also confirmed by previous Flipkart investor, Softbank CEO, Masayoshi Son who also stated that the Japanese conglomerate sold out the 20% stakes it bought last year for $2.6 Bn at $4 Bn, therefore making a 60% profit on its initial investment. Out of the 50 existing investors in Flipkart, only Tiger Global Management and Tencent are expected to prolong their association with the e-commerce giant. This is also the first time that a US company bought out an entire online platform in India, driven...

How the World Reacts to the Flipkart-Walmart Acquisition Deal

9May By Sheldan RungasamyNo Comments

News

How the World Reacts to the Flipkart-Walmart Acquisition Deal

The Flipkart-Walmart acquisition deal is almost completed and only details are left to be finalized. Walmart CEO Doug Macmillan and other Walmart top executives are reportedly set to reach Indian soil shortly to officially announce the completion of the deal between the brick-and-mortar giant and the Indian e-commerce company. However, while the deal met with some optimistic reaction from users and sellers, it does not make unanimous satisfaction in the country and has hit a few hurdles already with some people looking at the deal with skepticism. Here, we have compiled the best tweets related to the acquisition deal : 1. Selling a business for $15 Bn is quite an achievement though... Walmart to acquire Flipkart for $15b. Most Indian #startups end up bein...

Amazon.in Raises $385.7 Mn Ahead of Price War Against Flipkart-Walmart

9May By Sheldan RungasamyNo Comments

FUNDING

Amazon.in Raises $385.7 Mn Ahead of Price War Against Flipkart-Walmart

Amazon is gearing up for a price war in the wake of confirmations about the Flipkart-Walmart acquisition deal. The American e-commerce giant is set to infuse its funds with fresh capital worth an eye-dropping $385.7 Mn (INR 2,600 Cr) into its Indian unit, Amazon Seller Services to rival Indian arch-enemy Flipkart, according to a Livemint report. Amazon Corporate Holdings and Amazon.com inc. have distributed $385.7 Mn worth of funds in its Indian operations, confirmed by fillings to the corporate affairs ministry. The entry of deep-pocketed Walmart in the Indian e-commerce market is alarming the US digital marketplace giant who bids to expand and strengthen its capital to rival dropping prices that will probably follow the acquisition of Bengaluru-based Flipkart. The report also st...

Sachin Bansal, Co-Founder of Flipkart Will Leave Post Walmart Acquisition

8May By Sheldan RungasamyNo Comments

News

Sachin Bansal, Co-Founder of Flipkart Will Leave Post Walmart Acquisition

Sachin Bansal, Executive Chairman and co-founder of Flipkart is set to sell his entire 5.5% stake of his company to American brick-and-mortar giant Walmart as the acquisition of India’s largest tech company seems imminent. Three people close to the company reported the news which was subsequently shared on various platform. Indeed, Sachin Bansal might be living his last days at the company he co-founder and grew to reach the homes of almost every Indian as Walmart prepares its $12-15 billion bid to acquire the e-commerce business valued to be worth $20 billion. The 5.5% stake he stills owns in the company will be sold for a reported $1 billion, making him an instant billionaire. Sources close to the company suggested that Sachin was “not aligned with the strategy and operating struct...