Walmart, the world's largest retailer, is in advanced discussions to invest as much as $1 billion into Flipkart.
Walmart, the world’s largest retailer, is in advanced discussions to invest as much as $1 billion into Flipkart. According to Bloomberg, Walmart would take a minority stake in Flipkart, final terms of the deal have not been worked out and negotiations are still underway, a person familiar with the matter said. According to a research firm CB insights, Flipkart’s most recent valuation was $16 billion. The deal would help the two companies battle Amazon.com. Last week Flipkart crossed the 100-million registered users mark, becoming the first e-commerce company in the country to hit the milestone. The Bengaluru-based company has doubled its user base over the last year and added 25 million users in the past six months alone.
One of the most valued start-ups in the country, Flipkart has Tiger Global, Accel Partners, Morgan Stanley and T Rowe among its investors. The company has raised over $3 billion in funding so far and has acquired companies like Myntra, PhonePe, and LetsBuy. It has also invested in start-ups like Cube26, NestAway, and BlackBuck. A recent Bank of America Merrill Lynch Report pegged Flipkart as the leader with over 43 per cent market share. It forecast that by 2019, Flipkart would increase its share to 44 percent.
On the other hand, Walmart has been present in India for almost a decade now. The company had entered into an equal joint venture with Sunil Bharti, Mittal’s Bharti Enterprises. However, in 2013, it bought out its partner and decided to go solo. Walmart operates 21 Best Price wholesale offline stores in nine states in India.