Walmart Inc. has reached an agreement that confirms the control of India’s largest e-commerce website Flipkart into the hands of the multinational retail corporation. The war of online ascendancy invites the three-way fight in a country where setting a brick and mortar store is a task too hard to pull off.
“The Japanese company had earlier bought this stake, through its Vision Fund, for $2.5 billion,” said the son of the Chief Executive Officer Masayoshi. SoftBank holds 20 percent stake in Flipkart which avails $4 billion in the deal. The company had formerly bought this stake for $2.5 billion, making use of its Vision Fund.
However, the takeover of Flipkart by Walmart is not much elaborated by the company. During the deal, India’s largest e-commerce was valued near about $20 billion. People quite known with the matter reported that an announcement regarding the deal is much anticipated today.
Currently, SoftBank holds the largest number in the e-commerce portal. As a part of the deal, the Flipkart will transfer the largest stake to the tech giant SoftBank. The deal will embattle Flipkart as a bulletproof jacket, as the grim competition has kicked off about 50 percent of the $1.6 billion raised from its investors since
The investment has also witnessed Walmart’s victory over Amazon which may prove as a key growth for company’s market. Amazon also lost it to the Alibaba Group owned by Jack Ma. Jeff Bezos the founder of Amazon has already enacted an investment of $5.5 billion. It had been a tough time for Walmart to establish a place in Asia’s third-largest economy. While India has not yet opened doors for multi-brand retail to foreign companies. The race has also backed Alibaba Group and Paytm in the war.