Flipkart Sale has been in news for quite some time, but who will eventually buy Flipkart, Amazon or Walmart? Amazon is reportedly looking forward to acquiring 60% stakes in Indian E-Commerce Company, Flipkart and giving a stiff competition to Walmart.
However, all the three companies have not commented on this development. The offer provided by Amazon is likely to be on par with Walmart. Amazon is seeking a smaller share in the firm, while Walmart is looking for more than 60% stake and $2bn break-up fee. Walmart is planning to gain its presence in India and has been aggressively expanding its online presence in India.
Last year, Flipkart had won a backing from big companies like Microsoft and Tencent. After their investment, the value of Flipkart is believed to be more than $11bn. Walmart has been in talks with Flipkart since 2016 and is seeking to take a more than 80% stake in the company. Walmart had assured that the current management team will hold the same position as earlier according to reports. The offer by Walmart is supported by founders of Flipkart and other investors. The deal is supposed to attain a closure in the coming weeks.
Walmart has been challenged by Amazon’s development because online shopping has rapidly expanded in India due to Amazon’s expansion and development efforts. Walmart is working to progress its online presence and has brought the Jet.com, an e-commerce site and is also working with Chinese company Jd.com
According to reports, Amazon’s offer was likely to be on par with Walmart, but Amazon is seeking a smaller share in the firm, while Walmart is looking for more than 80% stakes.
Walmart, the Seattle based corporation stated that they are planning to invest more than $5bn in India, it has also announced the products which are custom made for the Indian market, also includes 18 original and unique series in India. According to India Brand Equity which was founded by the Indian government, India’s e-commerce industry is predicted to reach US$200bn by 2028, up from $38.5bn last year.