US-based retail giant Walmart Inc on Saturday said it has completed deal with Flipkart and now holds 77 per cent stake in the Indian e-commerce major.
Besides, the Bentonville giant's investment includes $2 billion of new equity funding to help accelerate the growth of the Flipkart business.
"With the completion of the investment, Walmart now holds approximately 77 percent of Flipkart. The remainder of the business is held by other shareholders, including Flipkart co-founder Binny Bansal, Tencent, Tiger Global and Microsoft Corp," a statement said today.
Moving forward, Flipkart's financials will be reported as part of Walmart's International business segment, it added.
"Walmart's investment includes $ billion of new equity funding to help accelerate the growth of the Flipkart business. Both companies will retain their unique brands and operating structures in India," the statement noted.
It added that Flipkart's existing management team will continue to lead the business.
"Our investment will benefit India by providing quality, affordable goods for customers, while creating new skilled jobs and opportunities for suppliers... 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," Judith McKenna, president and CEO of Walmart International, said.
Binny Bansal, Flipkart co-founder and group chief executive officer, said by combining Walmart's omni-channel 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".
Flipkart’s existing management team will continue to lead the business. Tencent Holdings Limited and Tiger Global Management LLC will remain represented on the Flipkart board, in addition to independent board members, and will be joined by new members from Walmart. The board will work to maintain Flipkart’s core values and entrepreneurial spirit, while ensuring it has strategic and competitive advantages.
Founded in 2007, Flipkart has led India’s eCommerce revolution. 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.
In a market where Walmart expects eCommerce to grow at four times the rate of overall retail, and with well-known platforms such as Myntra, Jabong and PhonePe, Flipkart is uniquely positioned to leverage its integrated ecosystem, which is defined by localized service, deep insights into Indian customers and a best-in-class supply chain.
Flipkart’s supply chain arm, eKart, serves more than 800 cities, making 500,000 deliveries daily. In the fiscal year ended 31 March, Flipkart recorded GMV of $7.5 billion1 and net sales of $4.6 billion representing more than 50 percent year-over-year growth in both cases.
With the investment, Flipkart will leverage Walmart’s omni-channel retail expertise, grocery and general merchandise supply-chain knowledge and financial strength, while Flipkart’s talent, technology, customer insights and agile and innovative culture will benefit Walmart in India and across the globe.
--With PTI inputs
Updated Date: Aug 18, 2018 20:45 PM