Walmart, the US-based retail giant, has now officially completed the acquisition deal with Flipkart to hold its 77 percent stake. After the closure, Flipkart’s future financial activities will be reported by Walmart International Business.
Along with the acquisition, Walmart also infused USD 2 billion of equity funding in the Bangalore-based startup. In the press release company said, “With the completion of the investment, Walmart now holds approximately 77 per cent of Flipkart. The remainder of the business is held by other shareholders, including Flipkart co-founder Binny Bansal, Tencent, Tiger Global and Microsoft Corp.”
The company has revealed that even after the acquisition, the existing management team at Flipkart will continue to lead the business. Judith McKenna, president and CEO of Walmart International, said,
“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.”
Binny Bansal, co-founder and CEO of the eCommerce firm said, “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.”
As said, existing stakeholders, including 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.
Going forward, in FY20, the global retailer plans to “accelerate growth in this important market, Walmart continues to anticipate a headwind to EPS of around $0.60.” The company said that 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.