Subject to regulatory approval in India, Walmart will pay approximately $16 billion for an initial stake of approximately 77% in Flipkart, formally Flipkart Private Limited. The remainder of the business will be held by some of Flipkart’s existing shareholders, including co-founder Binny Bansal, Tencent Holdings Limited, Tiger Global Management LLC and Microsoft Corp.
Tencent and Tiger Global will continue on the Flipkart board, joined by new members from Walmart.
With the investment, Flipkart will leverage Walmart’s omni-channel retail expertise, grocery and general merchandise supply-chain knowledge and financial strength, while Walmart will leverage Flipkart’s people, technology, customer insights and agile and innovative culture in India and across the globe.
Founded in 2007 and led Binny Bansal, chief executive officer, The Flipkart Group is one of India’s largest e-commerce marketplace and includes group companies Flipkart, Myntra, Jabong, and PhonePe.
Its supply chain arm, eKart, serves more than 800 cities, making 500,000 deliveries daily. In the fiscal year ended March 31, Flipkart recorded GMV of $7.5 billion and net sales of $4.6 billion.