The deal is set and now India’s e-commerce giant Flipkart will now be officially called as Walmart as the U.S retail giant Walmart has agreed to a deal to buy a majority stake in Flipkart for $16 billion.
The remainder of the business will be held by existing investors, including Flipkart’s co-founder Binny Bansal, Tencent, Tiger Global, and Microsoft.
Doug McMillon, the India Walmart chief executive announced the deal officially at a town hall meeting in Bengaluru. “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 the transformation of e-commerce in the market,” McMillan said in a statement.
Overall, the Walmart-Flipkart deal is expected to be a good boost for the e-commerce sector and may bring in some rationality, according to Sanjay Sethi, CEO of ShopClues.