Flipkart has also been the darling of investors and following investments from Softbank Vision Fund, eBay, Microsoft and Tencent, had in excess of $4 billion (Rs 26,800 crore) of cash on its balance sheet as on August 2017.
Walmart aren't going it alone however, it appears that Google's parent company Alphabet is grabbing a stake of perhaps 10% in a $20 billon valuation. The Terms of the partnership are yet to be concluded in ten days time from now.
It remains to be seen as to how the sellers react to the acquisition by Walmart.
Flipkart is India's largest e-commerce group on the basis of sales but has been fighting off a huge challenge from Amazon since the US conglomerate entered the country in 2013. Walmart can aid Flipkart with deep pockets and decades of retailing expertise in skills from logistics to marketing. They include rebuilding online reputation and accessing 1.3 million customers Flipkart customers. The deal will value Flipkart at $20 billion. Walmart now shifted its marketing strategy to tap opportunities in the Indian market.
On Monday, the ToI reported quoting sources that Walmart is ready to rope in more investors over the next few years, while keeping India's biggest ecommerce company's operations in line with its India game plan. Bentonville, Arkansas, meets Bangalore headlong through this mega transaction, even as Jeff Bezos's Amazon is defeated at the gates. Mr Amit Agarwal, the Amazon local Chief helped in harnessing the local opportunities. Several e-commerce giants like Amazon and Walmart are leaving no stone unturned to make the most of it.
In the competitive smartphone category, both Amazon and Flipkart have been fighting to win exclusive launches for leading brands. Walmart is merging Asda with the British retailer J Sainsbury Plc and will retain a 42 percent stake in the combined company. The initiative was to enable the company keep forty-two percent share in the new company.
Flipkart was valued at about $12 billion past year, according to researcher CB Insights.
Amazon is believed to have offered Flipkart a higher valuation of about $22 billion, along with a break up fee of $2 billion, compared to Walmart's $18-20 billion valuation of the Bengaluru-based company.
"Documents filed by Flipkart with the Singapore's Accounting and Corporate Regulatory Authority (ACRA) indicate that the holding company has become a private firm - Flipkart Pte Ltd in Singapore where it is registered", business intelligence platform Paper.vc Founder Vivek Durai told IANS on Friday.