Finally, the world’s largest retailer Walmart completed deal with Indian e-commerce giant Flipkart. Flipkart is being valued for an estimated $15 to $20 billion. On Wednesday, Walmart released an official statement.
Well, Flipkart is worth more than the combined market cap of listed entities of Avenue Supermarts Ltd, Trent Ltd and Kishore Biyani’s Future Retail Ltd.
Flipkart co-founder Sachin Bansal exited from the company. However, Binny Bansal will continue to remain a part of it.
Walmart will pay approximately $16 billion to acquire 77 percent in Flipkart. The remainder of the business will be held by some of Flipkart’s existing shareholders, including Flipkart co-founder Binny Bansal, Tencent Holdings Limited, Tiger Global Management LLC and Microsoft Corp.
Sachin Bansal and Binny Bansal set up Flipkart in 2007 in Bengaluru. Flipkart started as an online book selling platform.
In the year of its debut, Company registered 20 shipments. Its first full-time employee was Ambur Iyyappa.
After 2 years, in 2009, Accel partners invested $1 million. Then US hedge fund Tiger Global invested $10 million with Accel.
Flipkart has raised USD 1.4 billion from Tencent, eBay and Microsoft, while SoftBank Vision Fund added $2.5 billion.
In 2010, Flipkart started Cash on delivery in the country which changed the online shopping way.
Flipkart has acquired companies like WeRead, Letsbuy, FX Mart, Myntra and UPI-based payments startup PhonePe.
In 2017, Flipkart crossed 100 million registered users. As of now, it has more than 1 lakh registered sellers and 21 warehouses.
Former Tiger Global executive Kalyan Krishnamurthy is the CEO of Flipkart and he will continue on his post.
Flipkart buys back shares worth USD 350 million from investors as a precursor to the mega-deal with Walmart.
Walmart India opens first Fulfillment Center (FC) in Mumbai in November 2017.
Besides Cash and Carry business, other Walmart businesses in India include Global Sourcing Centre in Bangalore and Walmart Labs.
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