Stronger together: Walmart hails Flipkart deal
Walmart is now officially the largest shareholder in Flipkart. The US retailer has shelled out $16 billion for an approximately 77% share of the Indian e-commerce venture. The remainder of the business is held by other shareholders, including Flipkart Co-founder Binny Bansal, Tencent, Tiger Global and Microsoft Corp.
"Walmart and Flipkart will achieve more together than each of us could accomplish separately to contribute to the economic growth of India, creating a strong local business powered by Walmart," says Judith McKenna, President and CEO of Walmart International.
"Our investment will benefit India by providing quality, affordable goods for customers, while creating new skilled jobs and opportunities for suppliers. As a company, we are transforming globally to make life even easier for customers, and we are delighted to learn from, contribute to and work with Flipkart to grow in India, one of the fastest-growing and most attractive retail markets in world."
"We are poised and ready to deliver the full value of this partnership for India," adds Binny Bansal, Flipkart’s Co-founder and Group CEO. "By combining Walmart’s omnichannel retail expertise, supply chain knowledge and financial strength with Flipkart’s talent, technology and local insights, we are confident that together we can drive the next wave of retail in India."
Not everyone is a huge fan of the deal, however. The Confederation of All India Traders (CAIT) filed a petition with the Competition Commission of India (CCI), claiming that the move would create an uneven playing field and result in predatory pricing, deep discounts and loss funding.
A flurry of Walmart investors also expressed their concerns, including the Indian e-commerce venture's significant losses. This lead to a passionate defence by Walmart President Douglas McMillon and Walmart International President Judith McKenna. Further details on that here.