Flipkart is no more an Indian company!
US-based wall-Mart has acquired 20% stake of Flipkart from Softbank and 11.18% stake from Naspers, the tech, and e-commerce giant that owns Media24, announced on Wednesday that it has sold its 11.18% stake in India’s largest e-commerce marketplace, Flipkart, to US retail juggernaut Walmart. now it is a question about patriotism vs products.we should watch the game until its end!
- Flipkart was founded in 2007 in Bengaluru by
- Sachin Bansal and Binny Bansal, former employees of Amazon.
- The first billion-dollar Indian e-commerce company, Flipkart, sells 8 million products across 80-plus categories. It has 100 million registered users.
- Japan’s SoftBank Group Corp owns a fifth of Flipkart through its Vision Fund. Other major investors in Flipkart include Tiger Global, Naspers and Accel while the Bansals own just over 5 percent each of the company, according to data from business intelligence platform
- Last year, Kalyan Krishnamurthy, previously an executive in Flipkart investor Tiger Global, took over as Flipkart CEO. Binny Bansal became CEO of the whole group, which includes fashion portals Myntra-Jabong, payments unit PhonePe and logistics firm Ekart.
- India’s e-commerce market is tipped to grow to $200 billion in a decade, according to global financial services company Morgan Stanley, as cheap mobile data makes online shopping increasingly accessible.
- Flipkart controls nearly 40 percent of India’s online retail market, according to estimates by researcher Forrester.
- Flipkart, which is competing with Amazon.com Inc for market share in India’s e-commerce market, gained online fashion market dominance with the 2014 acquisition of Myntra, which subsequently bought rival Jabong.
- Meanwhile, Amazon – Flipkart’s biggest rival in India – has committed to invest over $5 billion in India. Amazon’s founder Jeff Bezos told shareholders in a recent letter that Amazon India is the fastest growing marketplace in the country. He said Amazon added more members to its Prime loyalty programme in India in its first year than any previous geography in Amazon’s history.
- For Walmart, the Flipkart deal will deliver a big advantage in terms of presence in the Indian e-commerce market. Flipkart will benefit from deep pockets of Walmart as well as the US retail giant’s decades of retailing expertise in skills from logistics to marketing. India is the next big potential prize for global retailers after the US and China, where foreign retailers have made little progress against Alibaba Group Holding.
- Walmart had entered India in 2009 through a joint venture with Bharti Enterprises and later took full control of that venture in 2013. It currently operates about 20 wholesale stores in the country that serve small businesses