American retailer, Walmart wanted to buy Flipkart but a Flipkart investor SoftBank Group Corp opposed to a sale, the three people added on condition of anonymity. As per the sources, “SoftBank is not willing to cash out this early as they see themselves as a long-term investor in Flipkart.”
American retailer Walmart Inc may end up taking a large stake in Flipkart Ltd at a price that could add value to India’s largest e-commerce firm between $20 billion and $23 billion.
If it goes through, the deal will place Walmart against Amazon in India, mirroring the fight between the two companies in the United States.
Initially the talks are in the early stages and the companies haven’t come up to a final decision. Walmart is expected to invest fresh capital in Flipkart as well as buy shares from existing investors including Accel Partners and Naspers.
Walmart has been eyeing India’s retail sector since so many years ago, but the existing foreign direct investment policy in India does not allow the US-based firm to serve have a meaningful presence in the country.
Interestingly, Walmart and Google held these talks with Flipkart earlier in late 2016 but those discussions didn’t lead to deals.Rajasthan Tourism App - Welcomes to the land of Sun, Sand and adventures