Flipkart and Amazon India are the most popular e-commerce sites in India. Flipkart has reportedly reached advanced discussions for tie-up with Walmart to sell some of its stake. However, fresh information claims that Amazon may attempt a rival offer to acquire Flipkart. According to Live Mint, people who are aware of the matter have claimed that there is a high possibility that Amazon may not acquire Flipkart, but Walmart may buy its 55 percent stake.
The U.S. based Walmart is the world’s leading retailer company. It is expected to buy Flipkart’s stake through at least two share purchases. The deal is pegged to value Flipkart at $21 billion.
The Walmart-Flipkart deal is expected to assist Flipkart to rival well with Amazon that has planned to invest $5 billion in India for growing its online grocery delivery. As of this writing, Amazon, Flipkart and Walmart are yet to release an official statement on the issue.
Flipkart was established in 2007 by ex-employees of Amazon, Sachin Bansal and Binny Bansal. A research carried out by Forrester research firm had claimed that Flipkart accounts for 40 percent of the online sales in India. Myntra, Jabong and eBay India are the sub-brands of Flipkart. It also owns PhonPe mobile payment firm. The accumulated earnings of these sub-brands make Flipkart more popular than Amazon in India. Apart from Walmart and Amazon, Google too has shown an interest to acquire Flipkart in the recent past.