Walmart has officially bought the homegrown e-commerce giant Flipkart after months of deal fallouts and setbacks since 2016. The US behemoth has acquired 77 per cent stakes in Flipkart in a $16 billion dollar deal – one of the biggest acquisitions. Sachin Bansal, who co-founded Flipkart with his partner Binny Bansal in 2007, has henceforth announced that he is parting ways with the company after many years. Binny Bansal, on the other hand, will take the helm as the group CEO, in addition to serving as the executive chairman of the Flipkart group.
Flipkart-Walmart deal does not come as a surprising move as Walmart has been attempting to enter the Indian market aggressively for a long time. While the company initially set up few retail stores in India (in Chandigarh), it had also been trying to woo Flipkart to gain interest in doing the e-commerce business in India together. Walmart was initially interested in picking a minority stake in Flipkart, however, it grew its plans to own a majority stake in the company, which have now finally borne fruits.
The acquisition is subject to approval by the Competition Commission of India later this year, after which the 11-year old e-commerce rival to Amazon gains a value of $20.8 billion. Sachin Bansal made the announcement via a heavy-hearted Facebook post filled with utter sadness. However, his departure does not come as a surprise as he has been reluctant to the Walmart’s operating structure and strategy post the acquisition. Here’s the full text that he addressed to the fellow ‘Flipsters’ – a term used for the Flipkart employees, much like Google’s culture of naming its employees and coders:
Flipkart truly upheld audacity and customer centricity and I got to work with the best people. We took on some of the biggest challenges and solved many complex problems for India.
Sadly my work here is done and after 10 years, it’s time to hand over the baton and move on from Flipkart. But I’ll be watching and cheering from the outside – Flipsters, you better continue to do a good job!
I’ll be taking some long time off and focus on finishing a few personal projects which I haven’t been able to find time for. Will catch up on gaming (and see what kids are playing these days) and brush up on my coding skills.
I will always cherish the relationships I’ve built and amazing experiences I’ve had.
Wishing all the best to the whole team.