Walmart wants to clip Amazon’s wings in India; may partner with Flipkart to take on the common rival
Advertisement
Advertisement
It is likely Walmart will pick up a minority stake in Flipkart and both of them will take on the common rival.
As per reports, discussions have happened between the two parties. ET reported Walmart is likely to discuss a strategic deal with Flipkart.
This will be similar to the deal that Walmart did with JD.com in China as it bought a 5% stake in the second-largest Chinese ecommerce marketplace for about $1.5 billion.
However, the price deal has not been disclosed.
Advertisement
If the deal goes through, Flipkart will be able to use Walmart's global supply chain and increase its efficiency in procurement, product assortment and further improve its technology platform.
Meanwhile, Amazon’s India story is becoming interesting day-by-day and is challenging Flipkart's leadership position in India and threatening Walmart's supremacy in the US.
In 2015, Amazon's revenue grew by 20% to $107 billion ($99 billion from online sales, the rest from Amazon Web Services) while Walmart's sales declined by 0.7% to $482 billion. In the second quarter of fiscal 2017, Walmart's revenues rose 0.5% to $120.9 billion while Amazon reported sales of $30.40 billion, up 31.1% from the year-ago quarter.
Advertisement
Amazon is also trying to bridge the gap with Flipkart, which now has over 100 million registered users.Flipkart, which is backed by Tiger Global, Qatar Investment Authority, DST Global, GIC, Naspers, Accel Partners,
Flipkart also owns Myntra and Jabong.
Advertisement
- US buys 81 Soviet-era combat aircraft from Russia's ally costing on average less than $20,000 each, report says
- 2 states where home prices are falling because there are too many houses and not enough buyers
- A couple accidentally shipped their cat in an Amazon return package. It arrived safely 6 days later, hundreds of miles away.
- Foreign tourist arrivals in India will cross pre-pandemic level in 2024
- Upcoming smartphones launching in India in May 2024
- Markets rebound in early trade amid global rally, buying in ICICI Bank and Reliance
- Women in Leadership
- Rupee declines 5 paise to 83.43 against US dollar in early trade
- JNK India IPO allotment date
- JioCinema New Plans
- Realme Narzo 70 Launched
- Apple Let Loose event
- Elon Musk Apology
- RIL cash flows
- Charlie Munger
- Feedbank IPO allotment
- Tata IPO allotment
- Most generous retirement plans
- Broadcom lays off
- Cibil Score vs Cibil Report
- Birla and Bajaj in top Richest
- Nestle Sept 2023 report
- India Equity Market