Wal-Mart in talks to invest up to $1bn in India's Flipkart | Fin24

Wal-Mart in talks to invest up to $1bn in India's Flipkart

Sep 28 2016 08:10
Saritha Rai
This Walmart store in Chinatown, Los Angeles, is o

This Walmart store in Chinatown, Los Angeles, is one of seven Walmart stores in Southern California and 269 stores across the globe that will close down due to company restructuring. (AFP)

Related Articles

Walmart’s UK job cuts show how Asda fell behind

Walmart to test grocery delivery through Uber

Walmart lifts retail shares as US stocks retreat

Walmart sues Visa over chip cards in US

Walmart cuts growth forecast as currency hampers sales

Walmart’s Asda unveils more price cuts


Bangalore - Wal-Mart Stores is in advanced discussions to invest as much as $1bn into India’s Flipkart Online Services, as the two companies battle Amazon.com in e-commerce, according to a person familiar with the matter.

Wal-Mart, the world’s largest retailer, would take a minority stake in Flipkart, the person said, asking not to be identified because the matter is private. Final terms of the deal have not been worked out and negotiations are still underway, the person said.

Flipkart’s most recent valuation was $16bn, according to research firm CB Insights.

Flipkart is the largest online retailer in India, but its lead has been under assault as Amazon steps up its investments in the country. Chief executive officer Jeff Bezos said in June he plans to spend another $3bn in the country to gain customers in the fast-growing market.

The deal could benefit both Wal-Mart and Flipkart. The Indian retailer would get access to much-needed capital as funding becomes more difficult to obtain in the country, while Wal-Mart would gain exposure to India’s expanding e-commerce market and challenge Amazon on more equal footing than the US.

Flipkart declined to comment. A spokesperson for Wal-Mart said she could not immediately provide comment.

After the US and China, India is the next big online retail market and both Amazon and Wal-Mart have been pursuing the opportunity. Bentonville, Arkansas-based Wal-Mart earlier had a retail joint venture in India with Bharti Group, which runs the country’s largest telecommunications operator Bharti Airtel. But venture failed to take off and Wal-Mart eventually sold its stake to its partner.

Fin24's top stories trending on Twitter:

wal-mart  |  retail  |  acquisitions


Company Snapshot

Voting Booth

How concerned are you about ransomware attacks?

Previous results · Suggest a vote