The world’s largest retailer, Walmart, which is in direct competition with Jeff Bezos-led e-commerce giant Amazon in the US, may be looking at India, the fastest-growing market, for the next round of business rivalry.
A news report on Tuesday said Walmart was in early talks to pick up a minority stake in Flipkart, which claims to be bigger than Amazon in India.
While neither Bentonville-headquartered Walmart nor Sachin Bansal and Binny Bansal-founded Flipkart commented on the issue, a source said it may not make much sense for the American brick-and-mortar giant, with significant online ambition, to pick a minority stake in Flipkart at the valuation it commands
The Bengaluru-based company had past estimated its own value at over $15 billion last year, but many of its investors have marked down the worth since then. Even after the markdowns, which are theoretical, Flipkart is valued at $10-$11 billion.
“A minority stake in Flipkart will not give Walmart any substantial play in the online space, while paying a big price for it,” the source said, explaining why such a Read Full Story
“A minority stake in Flipkart will not give Walmart any substantial play in the online space, while paying a big price for it,” the source said, explaining why such a Read Full Story
- It may not make much sense for the American brick-and-mortar giant, with significant online ambition, to pick a minority stake in Flipkart at the valuation it commands, a source said
- The talks between the two could be for other strategic tie-ups, rather than a stake deal, another source said
- Many analysts have pointed out that there’s a reason for Walmart to gain traction in the online market in India
- Walmart has been in negotiations with several e-com firms, including Shopclues and Snapdeal, for presence across online platforms
- The biggest trigger is Alibaba finalising its direct India foray
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