Walmart completes Flipkart acquisition; invests $2bn
Written by Chris Lemmon
Walmart has announced the closing of the agreement to become the largest shareholder in India’s leading e-commerce platform, Flipkart.
As part of the investment, Walmart will also inject $2 billion of new equity funding to help accelerate the growth of the Flipkart business. Both companies will remain separate, with different operating structures in India.
The deal will help to transform Walmart’s position in India, as the company hopes to drive sustained economic growth across agriculture, food and retail in the country. Walmart stated that it will look to further invest in India, supporting national initiatives, bringing sustainable benefits in jobs creation, supporting small businesses, farmers and supply chain development.
The completion of the investment means that 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.
“Our investment will benefit India by providing quality, affordable goods for customers, while creating new skilled jobs and opportunities for suppliers,” said Judith McKenna, president and chief executive of Walmart International. “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.”
"We are poised and ready to deliver the full value of this partnership for India,” added Binny Bansal, Flipkart’s co-founder and group chief executive officer. “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.”