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Walmart completes deal to buy 77% stake in Flipkart

The investment includes $2 billion new equity funding, an official statement by Walmart said on Saturday.

business Updated: Aug 18, 2018 20:21 IST
PTI
PTI
New Delhi
Walmart,Flipkart,Walmart Flipkart deal
The logo of Walmart is pictured at one of their stores. (Reuters File Photo)

US-based retail giant Walmart Inc said on Saturday it has completed deal with Flipkart and now holds 77% stake in the Indian e-commerce major.

Besides, the Bentonville giant’s investment includes $2 billion of new equity funding to help accelerate the growth of the Flipkart business.

“With the completion of the investment, Walmart now holds approximately 77 per cent of Flipkart. The remainder of the business is held by other shareholders, including Flipkart co-founder Binny Bansal, Tencent, Tiger Global and Microsoft Corp,” a statement said on Saturday.

Moving forward, Flipkart’s financials will be reported as part of Walmart’s International business segment, it added.

“Walmart’s investment includes $2 billion of new equity funding to help accelerate the growth of the Flipkart business. Both companies will retain their unique brands and operating structures in India,” the statement noted.

It added that Flipkart’s existing management team will continue to lead the business.

“Our investment will benefit India by providing quality, affordable goods for customers, while creating new skilled jobs and opportunities for suppliers... we are delighted to learn from, contribute to and work with Flipkart to grow in India, one of the fastest-growing and most attractive retail markets in world,” Judith McKenna, president and CEO of Walmart International, said.

Binny Bansal, Flipkart co-founder and group chief executive officer, said by combining Walmart’s omni-channel retail expertise, supply-chain knowledge and financial strength with Flipkart’s talent, technology and local insights, we are confident that together we can drive the next wave of retail in India”.

First Published: Aug 18, 2018 19:43 IST