Walmart Acquired 77% stake of Flipkart- the Indian e-commerce leader. Walmart Announced this on Wednesday through their website. Walmart pays 16 billion dollars to Flipkart for this deal. This is the biggest overseas deal by Walmart in its history.
The Deal between Flipkart and Walmart is a big challenge for Amazon – the main competitor of Flipkart. The Deal will definitely impact the prices of Indian e-commerce market. Flipkart was started in 2007 at Bengaluru by Sachin Bansal and Binny Bansal, both worked as interns at Amazon. Sachin Bansal had 5.5% Stake on Flipkart, He sold his entire shares to Walmart.
The new deal between Walmart and Flipkart is a big threat to other small e-commerce companies. It will be very difficult to survive in the industry because of the price war between Flipkart and Amazon. Experts say that the deal between Walmart and Flipkart will help the industry by creating huge supply chain infra and more job opportunities.