Who does not know about giant retail company WalMart? It is world’s largest retail company. Now Walmart wants to make its presence in a country like India because India’s population is about 130 crore. India is moving fast ahead in the world of e-commerce. That’s why Walmart wants to strengthen its position in e-commerce market to compete with Amazon.
While the number of internet users per day increasing in India, many investors have their eye in India. India has been growing very rapidly in the e-commerce market. In the next 10 years, it is going to increase by 10times. This is the reason why the company like Walmart was trying to acquire most of the stake from Flipkart for a long time.
Amazon e-commerce market already has a stronghold in India. For Walmart, it will take a lot of time to make its place in India. That’s why WalMart bought 77% of Flipkart’s stake whose evaluation is around $16billion. Now with Flipkart and Walmart deal, Walmart will be connected with Flipkart’s customers in India. There are approximately 10 crore people who use Flipkart in India. Well, one thing about WalMart is quite popular that it sells its products at a very low price to its customers.
Walmart was trying to make this deal for a long time, but after the arrival of the Trump government, it became easier to make this deal successful. Walmart will pay approximately 16 billion dollars to buy Flipkart’s 77% stake, which is Walmart’s biggest deal ever so far. But Walmart knows well that the market of e-commerce in India is going to increase 10x more in the next 10 years.
Amazon will be concerned with this deal because Flipkart is the main competitor of Amazon in India. Its biggest competitor Walmart from US & other countries is now coming to India. This deal will definitely affect Amazon’s business.
Well, you need to know that Flipkart’s Owners Sachin and Binny Bansal did their internship in Amazon and later opened their own company Flipkart in 2007. Amazon was also interested to purchase the stake of Flipkart but could not succeed. Flipkart, however, had other investors such as Microsoft-1.8%, Japanese company Softbank-22.3%, Nasper-13.8%. But now most of the stakeholders also got the exit because in return they got a handsome amount from Walmart.
Who Will Affected:
The dealers associated with Flipkart from this deal are also very worried. Because Walmart sells products at a very low price and causes considerable damage to small traders. But consumers should expect good because Walmart will sell a variety of products at a very cost-effective price.
Although many traders are also protesting against this and are showing displeasure with the government. Due to the foreign company, many domestic traders have to suffer significant losses. Now the coming time will say who will get benefitted and who has to suffer from this deal.