khakhi_chaddi
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Wal-Mart in talks to invest up to $1 billion in Flipkart
Wal-Mart may take a minority stake in Flipkart; Final terms of the deal have not been worked out and negotiations are still underway
The deal could benefit both Wal-Mart and Flipkart. The Indian retailer would get access to much-needed capital as funding becomes more difficult to obtain in the country, while Wal-Mart would gain exposure to India’s expanding e-commerce market and challenge Amazon on more equal footing than in the US.
Flipkart declined to comment. A spokeswoman for Wal-Mart said she could not immediately provide comment.
After the US and China, India is the next big online retail market and both Amazon and Wal-Mart have been pursuing the opportunity. Bentonville, Arkansas-based Wal-Mart earlier had a retail joint venture in India with Bharti Group, which runs the country’s largest telecommunications operator Bharti Airtel. But the venture failed to take off and Wal-Mart eventually sold its stake to its partner.
The rate of growth in traditional retail has been modest. But Kotak Institutional Equities recently estimated that online retail will average 45% annual growth rates in the next four years and touch $28 billion by 2020. Bloomberg
Wal-Mart may take a minority stake in Flipkart; Final terms of the deal have not been worked out and negotiations are still underway
The deal could benefit both Wal-Mart and Flipkart. The Indian retailer would get access to much-needed capital as funding becomes more difficult to obtain in the country, while Wal-Mart would gain exposure to India’s expanding e-commerce market and challenge Amazon on more equal footing than in the US.
Flipkart declined to comment. A spokeswoman for Wal-Mart said she could not immediately provide comment.
After the US and China, India is the next big online retail market and both Amazon and Wal-Mart have been pursuing the opportunity. Bentonville, Arkansas-based Wal-Mart earlier had a retail joint venture in India with Bharti Group, which runs the country’s largest telecommunications operator Bharti Airtel. But the venture failed to take off and Wal-Mart eventually sold its stake to its partner.
The rate of growth in traditional retail has been modest. But Kotak Institutional Equities recently estimated that online retail will average 45% annual growth rates in the next four years and touch $28 billion by 2020. Bloomberg
