? Cool Title, but what’s the news?
Since the transaction is now complete, Walmart now holds a 77% stake in the Indian e-commerce major. Walmart’s investment includes USD 2 billion of new equity funding to help accelerate the growth of the Flipkart business.
? Okay, but what does it mean?
For the unaware, the Flipkart-Walmart deal was announced in May this year, and it’s the largest one so far in the Indian retail space. This is also Walmart’s biggest acquisition and will help it compete more aggressively with its US-based rival Amazon.
Flipkart’s existing management team will continue to lead the business. Walmart and Flipkart will retain their individual brands and separate operating structures in the country.
? Why should I care?
The deal is supposed to benefit Indian customers by providing quality, affordable goods for customers while creating new skilled jobs and opportunities for suppliers.