Flipkart owner Sachin Bansal sells out the maximum shares to Walmart

Flipkart owner Sachin Bansal sells out the maximum shares to Walmart

"Its not an ordinary deal between two companies but certain important issues concerning FDI policy, data security, competition, unfair practices etc. have been involved".

The Flipkart purchase gives Walmart far more influence in India - both politically and economically - and positions it to shift quicker into retail outlets if the regulatory landscape changes. It is also touted that Jack Ma's Alibaba Group also intends to become the third player in India, making the diversity in choices apparent.

The deal presents India as an attractive investment destination and proves the maturity and viability of the start-ups and e-commerce sector of India, said Lalit Bhasin, senior vice president of Indo-American Chamber of Commerce (IACC).

"It's capital intensive business that needs deep pockets which Walmart has", she tweeted.

The Confederation of All India Traders (CAIT) have said the deal is nothing but a clear attempt to control and dominate the retail trade in India by Walmart through e-commerce in the long run. Walmart has revealed it will pay $16bn for a 77 percent stake in the Indian e-retailer. It already operates wholesale stores in the country.

"The owner can dictate anything".

India's online retail industry is expected to hit $73 billion (roughly Rs. 4.9 lakh crores) a year by 2022 and predicted to grow to $200 billion (roughly Rs. 13.5 lakh crores) in a decade as its middle-class customer base grows every year and smartphone penetration increases. Then, the e-commerce company launched logistics arm Ekart.

Upon completion of the transaction, Walmart will work closely with the remaining shareholders in Flipkart that include Tencent Holdings and Microsoft, who will be able to provide key strategic and technological insight for the company moving forward.

Gunderson Dettmer Stough Villeneuve Franklin & Hachigian, which has served as outside counsel to Flipkart since 2011, including advising the company a year ago on a $2.5 billion investment from Japan's SoftBank Group Corp.'s Vision Fund, is serving as lead M&A and worldwide counsel to the company on its proposed sale to Walmart.

New York-based investment firm Tiger Global is to reap profits of $3 billion on a total investment of about $1 billion. Reports also suggest that Walmart may look to buy back all the vested shares that are owned by Flipkart employees. The acquisition was first announced by investor Softbank's CEO and founder Masayoshi Son followed by an official statement from Walmart. Last year, however, the company's valuation dropped to about $12 billion, and the duo lost their billionaire status.

Accel: Accel is keeping some of its shares in Flipkart, but the firm will notch one of its biggest exits after almost a decade of sitting tight. The company has grown rapidly and earned customer trust, leveraging a powerful technology foundation, including artificial intelligence, and emerging as a leader in electronics, large appliances, mobile and fashion and apparel.

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