Walmart confirms Flipkart deal
Thursday May 10 2018
In its biggest ever deal, Walmart has beaten off rival Amazon to seal a $16 billion purchase of a 77% Holding in Indian ecommerce giant Flipkart
The remainder of the company will remain in the hands of co-founder Binny Bansal and other shareholders.
Walmart’s acquisition will see it take a firm foothold in the Indian ecommerce market which is expected to be worth as much as $200 billion over the next ten years.
Nicolás Avila, VP of technology, for Globant said: “Amazon is cloning itself in India, while Walmart
goes for an acquisition. The overall experience of Walmart in the US relies a lot on their physical retail presence. Merging this experience with a pure digital player like Flipkart will be challenging but very important to cement.”
Meanwhile, Dan Neiweem, co-founder and principal, for Avionos believes Walmart had to act first before Amazon
or eroded their market share.
He explained: “By acquiring Flipkart, Walmart has become the leader in ecommerce in India. Amazon has committed $5.5 billion to India, so it was only a matter of time before they took over as the leader. If Walmart didn’t make this move now, they would be likely spend way more to get into the market."
Tagged as: Walmart | Flipkart | Amazon | ecommerce | India | Globant | Avionos