With an aim to grab a larger market share, Amazon.com Inc may make an offer to Flipkart, a home-grown online retail company. Mint newspaper has reported, the US retailer could buy a majority stake in Flipkart.
Flipkart has already been in talks with Walmart Inc for a stake sale of over 40 per cent, if the deal goes through it will pose a direct competition to Amazon in India. According to the report it plans to buy through a mix of primary and secondary share purchases in a deal that could value Flipkart at $21 billion.
Experts say deal with Walmart is more likely to go through, which would give Walmart a lot of say in running the company. The deal with Walmart will also help Flipkart to take on the US retailer Amazon. Flipkart was founded by former Amazon employees Sachin Bansal and Binny Bansal in 2007.
Google also offered to invest in the e-commerce firm at a valuation of $15-16 billion, Mint reported in February.
According to research firm Forrester, Flipkart, controls nearly 40 per cent of India’s online retail, beating Amazon. With an aim to expand its business in India Amazon has committed to invest $5 billion in India
Flipkart raised capital from SoftBank in August 2017, which increased its valuation to $14.2 billion.