Walmart Finalizes the Buyout of a 77% Stake in India’s Major Retail Store, Flipkart
In a bid to make headway in the international market, Walmart Inc declared on Saturday last week that it had acquired a massive 77 percent stake in the major e-commerce store Flipkart based in India.
Additionally, the corporation announced that it had pumped up to $2 billion into Flipkart to increase its growth and market size in its business niche.
That being said, both brands will retain their uniqueness as well as the operating structure in the Indian market.
Expanding its international influence
At the current moment, the remaining 23% of the company is held by other shareholders, including Binny Bansai, the co-founder of Flipkart. Other notable shareholders included Microsoft Corp, Tiger Global, and Tencent.
In a statement, CEO and International President of Walmart Inc, President Judith McKenna was confident of the stake acquisition, saying that both companies will achieve more working together rather than working as competitors. This, in turn, will contribute immensely to India’s economic growth through Walmart’s activities in promoting local businesses.
Improving the retail market in India
Additionally, Mckenna continued to say that Walmart’s investment in the Indian market will not only lead to the improvement of quality goods being provided to customers, but also lead to the creation of new opportunities and jobs for suppliers as well.
Moreover, McKenna believes that the company is transforming exponentially to cater to the international market, and to make life much simpler for consumers. Frankly, Walmart Inc is happy to be playing a part in Flipkart’s growth as one of the world’s fastest-growing attractive retail market.
Staff to be retained
According to the statement, it appears that Flipkart’s current management team will continue to handle the operational structure and financial details of the corporation.
Additionally, other shareholders such as Tiger Global Management LLC and Tencent Holdings Ltd will still be present in the board of directories, with the addition of new members arriving from Walmar.
This way, the board will continually strive to maintain the core values of the company, and work coherently to foster an entrepreneurial essence to maintain its advantage over other retail competitors.
That being said, all Walmart financials regarding Flipkart will be relayed as part of the International business segment.
Developing important facets of the economy
In a press statement, Co-founder of Flipkart Binny Bansal said that he was excited with the new partnership and looking to Flipkart delivering its full value to consumers.
He continued on to say that the combination of Flipkart’s local insight and talent, with Walmart’s retail expertise and knowledge in the supply-chain industy, the partnership could be the driving force to the next wave or retail prowess and efficiency in India.
The statement continued on to say that the partnership would ensure economic growth in vital sectors of the Indian economy such as food, retail, and agriculture.
Both parties look excited with the new merger, with consumers expected to benefit immensely from improved service provision and job creation.
Prospects of a brighter future
Additionally, Walmart plant to direct future investments to the company that will assist in national initiatives such as job creation, the growth of SMEs, the support of farmers in the agricultural sector; not to mention the minimization of food waste and the growth of the supply chain development.
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