Softbank CEO Masayoshi Son has confirmed the Flipkart-Walmart deal, which could be the biggest deal in the e-commerce space. According to reports the world’s biggest ever e-commerce acquisition is likely to take place today. Carl Douglas McMillon, president and chief executive officer of Walmart Inc., accompanied by Walmart International’s Judith McKenna and CEO (commerce) Marc Lore have arrived at the Embassy Tech Village headquarters of Flipkart in Bengaluru on Wednesday and they are all set to announce the purchase of a majority stake in Flipkart in a deal that can value India’s first-to-a-billion-dollars-startup at roughly $18 billion to $20 billion.
As per reports, Walmart and Google parent Alphabet Inc, are looking to buy up to three-quarters of Flipkart. Walmart will look to own a roughly 60 percent stake, while Alphabet will get about 15 percent ownership of Flipkart, the report said, citing sources. Japan’s SoftBank Group Corp and Tiger Global Management can almost sell all of their 20 percent stake each in Flipkart.
Key facts about Flipkart:
- The company was founded by former Amazon employees Sachin Bansal and Binny Bansal in the year 2007. The Bansals, who are not related met in 2005 at the Indian Institute of Technology, Delhi.
- Flipkart opened its first office in Bengaluru in 2008 and later in Delhi and Mumbai in 2009. Last month, the company consolidated all its Bengaluru offices in one large campus.
- The first billion-dollar Indian e-commerce company, Flipkart, at first sold books, later expanding to sell music, movies, games, electronics and mobiles, the category that has driven growth. The first book it sold was John Wood’s Leaving Microsoft to Change the World.
- In 2010, the company launched logistics arm Ekart and started the now popular cash-on-delivery (COD) service.
- Flipkart sells 8 million products across 80-plus categories. It has 100 million registered users, 100,000 sellers, 21 warehouses, 10 million daily page visits.
Key Facts about $20-Billion Flipkart-Walmart Deal:
- For Walmart, the deal will deliver a big advantage in terms of presence in the Indian e-commerce market. Talking about Flipkart, it will benefit from deep pockets of Walmart as well as the US retail giant’s decades of retailing expertise in skills from logistics to marketing.
- Analysts say the deal would be the world’s biggest-ever e-commerce acquisition and pit Walmart head-to-head against rival Amazon in one of the world’s fastest-growing markets.
Earlier it was reported that Amazon.com Inc, which has been expanding aggressively since it entered the Indian market in 2013, had made a formal offer to buy 60 percent of Flipkart but Flipkart’s founders preferred Walmart