As the deal between Flipkart and Walmart inches closer, it has been reported that Sachin Bansal, the executive chairman, of Flipkart may leave the company who currently holds 5.5 percent stake in the company. Sachin and Binny Bansal found Flipkart in 2007 from an apartment in Bengaluru. The deal between the two retail giants may value Flipkart at $20 billion, which suggests Sachin Bansal would get around of $1 billion on his exit.
Sachin Bansal served as CEO of the company till 2016. Kalyan Krishnamurthy got promoted as Flipkart CEO in 2017 after the good performance of the company during the period of festive sales. Binny all this while worked as group CEO, responsible for investor relations and capital allocations across companies such as Phonepe and Myntra.
No final confirmation has, however, been made by any of the parties involved in the deal. According to reports all major investors in Flipkart, including SoftBank of Japan, are on board with Walmart’s purchase and the deal could be announced in the coming days.
Tiger Global Management and Softbank could sell their stake to Walmart which is looking for 60 percent stake in the company. The deal with Walmart is expected to value Flipkart at about USD 20 billion The deal will involve purchase of primary and secondary shares.
The rival company Amazon has also made a counter offer to buy 60 percent stake in Flipkart. The deal is not likely to go through as it could result in close scrutiny as the merged entity would have the major share of growing online retail market.
Amazon is reported to have offered Flipkart a higher valuation of about USD 22 billion, along with a break-up fee of USD 2 billion.
With inputs from PTI