In what can be called the world’s largest e-commerce deal, US retail biggie has acquired Flip kart in a 77% of the stake and sealed the deal for the largest e-commerce magnum opus. With nearly 20 months of talks coming to an end the meet has been a fruitful one and surely turned out to be one of the most lucrative deals of all time.
Walmart has zoomed passed rival Amazon to make it the biggest deal of all times and surpass all the limited boundaries. It will include the largest exit of the private equity and a lot of other investors. One of the Flip kart co-founder has exited while the other founder has stayed in the company.
How does the deal work for Walmart?
With the final deal sealed, now Walmart plans to expand in India and has assured the employees that the company will be strengthened, and the start-up will be eventually taken care of.
We hope to build a unique ecosystem, an innovation platform and the supply chain expertise.
How does it work for Flip kart?
The Flip kart brand will remain explicit from Walmart and will have a separate entity of its own. The talks between the two companies has begun around in the month of September 2016.Flip kart has been a market leader in the world of E-commerce with around 54 million active users on the website alone.
Flip kart was first founded in the year 2007, with a capital investment of around 4 lakh rupees and then there was no looking back.
What does the deal mean for India, Amazon and the consumers?
The stake can have an overall very big impact on the consumer sentiment and the sellers online.
ONLINE sellers in a fix
The online sellers at Flip kart are in a jittery since they are now worried about as to how deal will go with Walmart.
IT HAS CLOSE TO 3500 SELLERS on the Flip kart platform.
A close ally
Walmart’s investment in Flip kart will give quite a leeway and will be able to gain an extensive experience in the retailing, logistics and supply chain management.
Will give an economic headway
Agriculture and infrastructure will surely get a much-needed boost by the latter’s investment, it will simultaneously increase the supply chain and create many jobs.
How will it have the overall impact on the overall economy? There seems to be a lot of positive sentiment on this as it surely revolutionizes the Indian retail scenario for good.