BIGGEST GLOBAL E-COMMERCE DEAL | WALMART AND FLIPKART
Here we will discuss the Biggest E-commerce Deal between Walmart and Flipkart.
American retail giant Walmart Inc is picking up a 77% stake in domestic online retailer Flipkart for $16 billion (Rs 1.12 lakh crore) in the largest e-commerce deal ever struck anywhere in the world. The deal values the 11-year-old Flipkart at approximately $21 billion (Rs 1.47 lakh crore).
Walmart (formerly branded as Wal-Mart) is an American multinational retail corporation that operates a chain of hypermarkets, discount department stores, and grocery stores. Headquartered in Bentonville, Arkansas, the company was founded by Sam Walton in 1962 and incorporated on October 31, 1969. Walmart is the world’s largest company by revenue – approximately US$480 billion according to Fortune Global 500 list in 2016 – as well as the largest private employer in the world with 2.3 million employees. Walmart had entered India in 2009 through a joint venture with Bharti Enterprises and later took full control of that venture in 2013. It currently operates about 20 wholesale stores in the country that serve small businesses.
Founded -July 2, 1962;
Headquarters-Bentonville, Arkansas, United States;
Key people-Greg Penner (Chairman), Doug McMillon (President & CEO).
Flipkart is an Indian electronic commerce company headquartered in Bengaluru, India. It was founded in October 2007 by Sachin Bansal and Binny Bansal. As of May 2018, the company is valued at $20 billion. Flipkart was founded in 2007 by Sachin Bansal and Binny Bansal, both alumni of the Indian Institute of Technology Delhi. They worked for Amazon and left to create their new company incorporated in October 2007 as Flipkart Online Services Pvt. Ltd. Flipkart started by selling books online and popularised the idea of buying books online in India.
Subsidiary Company-Myntra, PhonePe, Jabong, eBay(India), Ekart, Jeeves
Founders-Sachin Bansal, Binny Bansal
Important Highlights Of Acquisition In Flipkart By Walmart:
- The transaction, which was officially announced on 09th May 2018 after months of extensive media coverage, has been in the works since 2016.
- Walmart values 11-year-old Flipkart at $20.8 billion
- Sachin Bansal, co-founder of Flipkart, will exit the company
- Japan’s SoftBank, an investor, will also exit the company by selling its entire 20 percent stake in Flipkart.
- India’s first billion-dollar e-commerce company, Flipkart, sells 8 million products across 80-plus categories. It has 100 million registered users.
- Walmart ploughing $2 billion into the company as primary capital. The rest of the stake for Walmart will come from buying out existing investors like Japan’s SoftBank, Tiger Global (an investment fund based in New York) and South African media and internet group Naspers, among others, at a valuation of $19-20 billion.
- Meanwhile, Amazon – Flipkart’s biggest rival in India – has committed to invest over $5 billion in India.
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