As the heat intensifies to capture India’s e-commerce market, there are reports that Amazon may submit a rival offer to buy the country’s largest e-commerce platform Flipkart. The latter is currently in talks with Walmart Inc for a stake sale.
A deal with Walmart is more likely to go through, according to people with knowledge of the matter, said a report in Mint.
The world’s largest retailer Walmart is in talks to buy 55 per cent of Flipkart through a mix of primary and secondary share purchases in a deal that could be worth USD21 billion. Flipkart investors Tiger Global Management, Accel Partners, Naspers, IDG Ventures and others are expected to sell many or all of their shares in the Flipkart-Walmart deal, the Mint report said.
The deal with Walmart is expected to aid Flipkart in its fight against Amazon, which has committed to investing USD5 billion in India as it expands aggressively, including into online grocery deliveries.
Apart from its famous e-commerce platform, Flipkart owns fashion businesses Myntra and Jabong, eBay India and mobile payments firm PhonePe.
The company was founded in 2017 by former Amazon employees Sachin Bansal and Binny Bansal. It controls nearly 40 per cent of India's online retail.