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US retailer Walmart buys 77% stake in Indian start-up Flipkart for $16 billion

May 09, 2018 21:19 IST
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American retailer Walmart Inc. has agreed to pay $16 billion for a 77% stake in India’s largest start-up Flipkart, valuing the firm at about $21 billion. This is one of the largest acquisitions ever in the country. The buyout is the largest-ever in e-commerce, according to data compiled by Bloomberg. It will see the exit of Flipkart’s co-founder and chairman Sachin Bansal. The other co-founder Binny Bansal and other Flipkart shareholders will hold the remainder of the stake. This is Walmart’s biggest ever deal and gives it greater access to India’s e-commerce market . It also enables Walmart to tap into India’s retail market without building stores. The deal comes less than five years after Walmart exited India as a joint venture with Bharti Enterprises soured.