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Walmart acquires 77% stake in Flipkart Group
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SME Times News Bureau | 20 Aug, 2018
Retail giant Walmart Inc. on Saturday acquired approximately 77 per cent stake in e-commerce major Flipkart.
According
to a statement, Walmart now holds approximately 77 per cent of
Flipkart, while the remainder of the business is held by other
shareholders, including Flipkart co-founder Binny Bansal, Tencent, Tiger
Global and Microsoft Corp.
Walmart's investment includes $2
billion of new equity funding to help accelerate the growth of the
Flipkart business and both companies will retain their unique brands and
operating structures in India.
"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," Walmart International President and CEO
Judith McKenna was quoted as saying in a statement.
"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." As per the statement,
structure and financial details of Flipkart's existing management team
will continue to lead the business.
"Tencent Holdings Ltd 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 statement said.
"The board will
work to maintain Flipkart's core values and entrepreneurial spirit while
ensuring it has strategic and competitive advantages."
Flipkart's financials will now be reported as part of Walmart's International business segment.
"We
are poised and ready to deliver the full value of this partnership for
India," Flipkart's Co-founder and Group Chief Executive Officer Binny
Bansal was quoted as saying in the statement.
"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."
The statement added that as Walmart scales in
India, the company will continue to partner to create sustained economic
growth across agriculture, food and retail.
"Future investments
by Walmart will support national initiatives and will bring sustainable
benefits in jobs creation, supporting small businesses, supporting
farmers and supply chain development and reducing food waste," the
statement added.
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