The deal would help the two companies battle rival Amazon.
World’s largest retailer Walmart is in advanced talks to invest nearly $1 billion (Rs. 6600 crore) into Indian e-commerce start-up Flipkart.
As per reports, Walmart would pick up a minority stake in Flipkart. The final terms of the deal have not been worked out and negotiations are still underway. The deal would help the two companies battle rival Amazon.com.
Flipkart, which crossed the 100-million registered user mark last week and hit the milestone, has doubled its user base over last year and added 25 million users in the past six months alone.
Walmart is present in India for almost a decade and it operates 21 BestPrice wholesale offline stores in nine states across the country.
As one of the most valued start-ups in India, Flipkart has Tiger Global, Accel Partners, Morgan Stanley and T Rowe among its financial Investors. Walmart had entered into an equal joint venture with Sunil Bharti, Mittal’s Bharti Enterprises, but in 2013, it bought out its partner and decided to go solo.
So far, Flipkart has risen over $3 billion in funding so far and has acquired companies like Myntra, PhonePe, and LetsBuy. It has also invested in start-ups like Cube26, NestAway, and BlackBuck.
After US and China, India is the next big online retail market and both Amazon and Walmart have been pursuing the opportunity.
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Walmart May Invest $1 Billion in E-Commerce Site Flipkart
http://newsgoogle.in/2016/09/29/walmart-may-invest-1-billion-flipkart/