Investment negotiations of Walmart with Flipkart comprise an offer to start a chain of retail shops in the country, claimed an investment banker well known with the matter to the media in an interview. This could lastly permit the firms to realize their long-harbored goals.
The US-located retail behemoth is discussing to purchase over a 30% share in largest online marketplace of India as it looks to start one more worldwide front in its war in opposition to Amazon. Walmart, on the other hand, is expected to receive only a 20% share due to objections from SoftBank, the newest investor of Flipkart. SoftBank holds a 20.8% share in the Indian firm, as per other sources aware of the developments.
“Flipkart has been attempting to raid into offline shops for a long time and has been seeking for the correct associate,” claimed the investment banker, asking for secrecy and refused to disclose more data.
Walmart can’t directly start retail shops in India due of limitations on foreign investments in multi-brand chain. It operates wholesale processes instead. As for the Indian firm, it requires more than only capital power to take on the deeply funded Amazon in the country. The media this week reported that the Indian online platform was in the fight to purchase Vishal Mega Mart retail chain from Shriram Group and TPG.
Spokespersons for Walmart, Flipkart, and SoftBank all refused to answer. Retail industry analysts claimed that a joint venture between Walmart and Flipkart might boost the online retail market of Flipkart, and consumer and grocery goods business for Walmart. Walmart already has an attendance in the country via its B2B arm coupled with 21 Best Price Modern Wholesale shops.
If Walmart’s discussion with Flipkart materializes, purchases of consumer and grocery products on Flipkart can be also managed through wholesale stores of Walmart, enhancing delivery speed and product availability for the online behemoth.
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