US retail giant Walmart acquires Flipkart for $16 billion for a valuation of over $20 billion, making it the largest ecommerce acquisition in the world.
“India is one of the most attractive retail markets in the world, given its size and growth rate, and our investment is an opportunity to partner with the company that is leading transformation of eCommerce in the market,” said Doug McMillon, Walmart’s president and chief executive officer in a statement .
Flipkart’s acquisition has put Walmart head-to-head against rival Amazon in one of the world’s fastest growing markets.
Sachin Bansal, Flipkart’s co-founder and its CEO for nine years, has sold his entire 5.5 per cent stake to Walmart and will now exit the company.
According to analysts, with acquisition of Flipkart, Walmart will be able to enhance thrust on the online grocery segment and will also extend its expertise in managing physical goods in the digital space.
