Walmart confirms Flipkart deal
By Retail Technology | Thursday May 10 2018 | UPDATED 23.02.23
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.”
Act first
Meanwhile, Dan Neiweem, co-founder and principal, for Avionos believes Walmart had to act first before Amazon acquired Flipkart 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."
Related items
AI is altering the industry path to purchase
By Toby Pickard, IGD Retail Futures Senior Partner | Toby Pickard, IGD Retail Futures Senior Partner