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Domestic e-commerce platform <keyword id="6354742" type="General" weightage="20" keywordseo="flipkart" source="Orion">Flipkart</keyword> on Friday announced its foray into the healthcare sector through the launch of Flipkart Health+, to provide consumers access to affordable and convenient healthcare. As part of this development, the Flipkart Group has signed definitive agreements to acquire a majority share in Sastasundar Marketplace, which owns and operates SastaSundar.com, an online pharmacy and digital healthcare platform, the company said in a statement. The new venture builds on Flipkart's efforts to address the growing consumer Internet ecosystem, providing end-to-end offerings from travel to healthcare as digital technologies continue to democratise access to products and services. "The consumer internet ecosystem in India is growing rapidly as consumers recognise the opportunities and convenience that digital adoption is enabling in their lives. With growing awareness and focus on health heightened by the pandemic, there is a large opportunity and demand for affordable healthcare and ancillary offerings. "We are excited to enter this space through this investment in SastaSundar.com, a company that has established itself as a trusted partner for lakhs of consumers through genuine products, a technology-powered platform and a wide network. "The synergies between the Flipkart Group and SatsaSundar.com, combined with our commitment to prioritise our customer's needs, will help us grow and transform online healthcare in India," said Ravi Iyer, Senior Vice President and Head -- Corporate Development, Flipkart, in the statement. SastaSundar.com offers a digital healthcare and pharmacy platform supported by a network of more than 490 pharmacies. It aims to address the issues of access to affordable and quality healthcare in India by providing original products from authorised sources and delivering them across the country. By utilising Artificial Intelligence and data analytics technologies and integrating them with personal counselling through its network, SastaSundar.com provides consumers comprehensive solutions for a wide range of healthcare needs. Flipkart Health+ will leverage the combined strengths of the Flipkart Group, which includes its pan-India reach and technology capabilities, with SastaSundar's deep expertise to provide consumers end-to-end offerings in the health-tech ecosystem. It will endeavour to give millions of Indian consumers access to quality and affordable healthcare, starting with e-pharmacy and will add new healthcare services such as e-diagnostics and e-consultation over time, the company said. Flipkart Health+ will report to Ajay Veer Yadav, Senior Vice President, it added. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/india/news/farm-laws-timeline-important-milestones-from-their-enactment-to-withdrawal/slidelist/87795876.cms">Farm laws timeline – important milestones from their enactment to withdrawal</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/personal-finance/news/how-does-buy-now-pay-later-schemes-work-and-what-are-the-penalties-here/articleshow/87788629.cms">From Simpl to Paytm Postpaid ⁠— these are the penalties on late payments on Buy Now, Pay Later schemes</a>

Flipkart enters healthcare sector by acquiring stake in online pharmacy SastaSundar

<div class="KonaFilter image-container display-table"><div><div class="image on-image">Paras Griffin/Getty Images for 2017 ESSENCE FestivalPresident and CEO of Wal-Mart Stores, Inc Doug McMillon speaks onstage at the 2017 ESSENCE Festival presented by Coca-Cola at Ernest N. Morial Convention Center on June 30, 2017 in New Orleans, Louisiana.</div></div></div><ul><li><a href="http://markets.businessinsider.com/stocks/wmt-stock">Walmart</a> is planning to buy back $20 billion of its own shares over the next two years. </li><li>But its $16 billion Flipkart acquisition could put a dent in those plans, according to RBC Capital Markets analyst Scot Ciccarelli. </li><li><a href="http://markets.businessinsider.com/stocks/wmt-stock">Watch Walmart trade in real time here.</a></li></ul>There's a different risk to <a href="http://markets.businessinsider.com/stocks/wmt-stock">Walmart</a>'s Flipkart acquisition than what everybody's talking about. While most of the concern on Wall Street surrounding Walmart's Flipkart acquisition has centered on <a href="http://markets.businessinsider.com/news/stocks/walmarts-stock-price-next-acquisition-could-be-bust-2018-4-1022444456?utm_source=markets&amp;utm_medium=ingest">whether or not the Indian e-commerce giant can be profitable anytime soon</a>, RBC Capital Markets analyst Scot Ciccarelli is worried about something else: the cash Walmart has available for its share buyback program. "The company outlined plans to repurchase roughly $10 billion worth of shares in both 2018 and 2019," Ciccarelli wrote in a note out to clients Friday morning. "We question, however, whether the acquisition of Flipkart will have an impact on these plans." Earlier this month, Walmart announced plans to <a href="http://www.businessinsider.com/flipkart-walmart-buying-a-controlling-stake-2018-5">buy 77% of Flipkart for $16 billion</a>. Walmart announced in October that it <a href="http://www.businessinsider.com/walmart-stock-price-20-billion-buyback-announcement-2017-10">plans to buy back $20 billion of its stock</a> within the next two years. Half of that is supposed to take place in 2018, according to Ciccarelli. And there seems to have been a disconnect between how Walmart intends to execute this plan, and how the plan is actually unfolding. Walmart recently held a conference call regarding the Flipkart purchase, and indicated that it will hardly - if at all - deviate from the original buyback plan."On the May 9th call to discuss the acquisition, management indicated that it will 'continue our share buyback roughly as we talked about with you in October,'" Ciccarelli noted. "However, repurchases in quarter-one slowed to just $539 million from average of $2.1 billion per quarter in 2017 and 2016." Walmart will only be able to accomplish $6 billion of buybacks for 2018, Ciccarelli estimates. For context, Walmart's buyback plan is fairly large. In <a href="http://www.businessinsider.com/trump-tax-reform-plan-repatriation-14-us-companies-with-most-cash-overseas-2017-9?utm_source=markets&amp;utm_medium=ingest">a year of heavy buyback activity</a>, Apple announced one of the largest buyback plans of all. <a href="http://markets.businessinsider.com/news/stocks/apple-stock-price-what-to-do-with-huge-cash-pile-2018-4-1022917605">The tech behemoth is planning to repurchase $25 billion of its own stock over the next 5 years</a>. Walmart is down 14.6% this year. <div class="KonaFilter image-container display-table"><div><div class="image on-image"><a href="http://markets.businessinsider.com/stocks/wmt-stock"></a>Markets Insider</div></div></div> <div class="margin-top"> <h3>NOW WATCH: <a href="http://www.businessinsider.com/ian-bremmer-globalism-american-dream-dead-chinese-dream-alive-2018-5">Ian Bremmer: Why the American dream doesn't exist anymore</a></h3> <div> </div> </div>

Walmart's Flipkart deal has one analyst questioning whether the company can fulfill a big promise it just made to shareholders

<div class="KonaFilter image-container display-table"><div><div class="image on-image">AP/Nick Ut</div></div></div><ul><li><a href="http://markets.businessinsider.com/stocks/wmt-stock">Walmart</a> wants to buy Flipkart, India's version of Amazon.</li><li>Walmart has entered the e-commerce space mainly through acquisitions. </li><li>This purchase is a bad idea, Oppenheimer analyst Rupesh Parikh wrote in a note to clients. </li><li><a href="http://markets.businessinsider.com/stocks/wmt-stock">Watch Walmart trade in real time here.</a></li></ul><a href="http://markets.businessinsider.com/stocks/wmt-stock">Walmart</a>'s foray into e-commerce has been mainly through acquisitions, and the next move it could make may be a bust, according to Oppenheimer analyst Rupesh Parikh. "We view a potential acquisition of Flipkart as potentially negative in the shorter term as it likely leads to earnings dilution," Parikh wrote. Flipkart is India's version of Amazon.<a href="http://www.businessinsider.com/r-walmart-could-buy-controlling-stake-in-flipkart-as-early-as-next-week-sources-2018-4">Walmart is reportedly in talks with Flipkart to acquire a 51% stake in the company</a> for between $10 billion and $12 billion. Walmart recently <a href="http://www.businessinsider.com/walmart-is-acquiring-bonobos-for-310-million-2017-6">bought Bonobos for $300 million</a> and <a href="http://www.businessinsider.com/walmart-is-buying-jetcom-2016-8">Jet.com for $3.3 billion</a>. The <a href="http://www.businessinsider.com/jet-walmart-weapon-vs-amazon-2017-9">Jet.com acquisition is said to be Walmart's most potent weapon in its battle against Amazon </a>for share in the e-commerce space. But the potential Flipkart purchase would likely detract value from Walmart because it would suffer "potential dilution related to a Flipkart stake,"Parikh wrote. While Flipkart's financials are hard to track down, it is reported the company lost roughly $1.4 billion on $3 billion of revenue last year.Parikh assumes Flipkart will lose about $750 million in 2018, which underpins his estimate that a Walmart acquisition of the Indian e-commerce giant would dilute Walmart's earnings-per-share by 5%. Mathematics aside, Parikh also warns the purchase "could unnerve investors playing for an intermediate-term earnings acceleration."Parikh emphasized that he has little knowledge of Flipkart's financials, and that his dilution estimate is strictly for the short-term. Walmart is down 10.57% on the year. <div class="KonaFilter image-container display-table"><div><div class="image on-image"><a href="http://markets.businessinsider.com/stocks/wmt-stock"></a>Markets Insider</div></div></div> <div class="margin-top"> <h3>NOW WATCH: <a href="http://www.businessinsider.com/wall-street-bull-explains-trade-war-trade-war-fears-overblown-2018-4">Wall Street's biggest bull explains why trade war fears are way overblown</a></h3> <div> </div> </div>

Walmart's next acquisition could be a bust - at least in the near-term, analyst says

<keyword id="6354742" type="General" weightage="20" keywordseo="flipkart" source="Orion">Flipkart</keyword> Group on Thursday said it has acquired electronics recommerce company <keyword id="4160726" type="General" weightage="20" keywordseo="yaantra" source="Orion">Yaantra</keyword> for an undisclosed sum. The acquisition, said Flipkart, will augment its existing refurbishment business in the smartphone category. "Through the acquisition of Yaantra, we are enhancing our capabilities in a domain that is critical for the growth of the digital economy in India, as well as developing a comprehensive service ecosystem to support its expansion," said Ravi Iyer, Senior Vice President and Head, Corporate Development, Flipkart. Founded in 2013 by Jayant Jha, Ankit Saraf and Anmol Gupta, Yaantra repairs and sells refurbished consumer tech products such as smartphones and laptops. The recommerce market in India is growing at a rapid pace. However, the Indian smartphone refurbishment market is largely unorganised and fragmented, which has posed trust and convenience issues for end consumers. With the acquisition of Yaantra, Flipkart said it will enable greater access to affordable refurbished smartphones, offering value and convenience for the end consumers. The Yaantra team will help Flipkart build capabilities in this domain and accelerate its recommerce scale-up plans. The business will report to Prakash Sikaria, Senior Vice President and Head of Flipkart's Growth Charter. "We believe this association will prove to be a game-changer in making the Indian refurbished market a success and creating an even better experience for our consumers," said Jha, Co-Founder and CEO, Yaantra.

Flipkart acquires refurbished electronics seller Yaantra

<div class="KonaFilter image-container display-table"><div><div class="image on-image">Jim Anderson/AP Photos</div></div></div><ul><li><a href="http://markets.businessinsider.com/stocks/wmt-stock">Walmart</a>'s acquisition of Flipkart has investors worried.</li><li>E-commerce is getting increasingly competitive in the US, and Morgan Stanley analyst Simeon Gutman thinks Walmart should be investing more in the US. </li><li>While Flipkart isn't expected to be profitable soon, Gutman does believe there is long-term growth potential in India. </li><li><a href="http://markets.businessinsider.com/stocks/wmt-stock">Watch Walmart trade in real time here.</a> </li></ul><a href="http://markets.businessinsider.com/stocks/wmt-stock">Walmart</a>'s decision to purchase Indian e-commerce leader Flipkart has investors worried the US retail giant is neglecting one of its core businesses: Walmart US. <a href="http://markets.businessinsider.com/news/stocks/walmart-stock-price-flipkart-majority-stake-2018-5-1023879080">Walmart announced Wednesday it will pay $16 billion for a 77% stake in Flipkart</a>. Investors did not applaud the news, as Walmart shares dropped 4% on the announcement. But Walmart President and CEO Doug McMillon defended the company's move. "India is one of the most attractive retail markets in the world, given its size and growth rate, and our investment is an opportunity ," he said in the press release for the acquisition. Still, investors are worried, according to a note from Morgan Stanley analyst Simeon Gutman. "Investors are questioning why Walmart is investing outside the US market (~2/3 of total revenue and ~75% of total EBIT) at a time when Amazon is stepping up its infrastructure/distribution related investments," Gutman wrote.He added "this investment will pull management attention from the US market at a time when competition has never been tougher."<a href="http://markets.businessinsider.com/news/stocks/amazon-stock-price-whole-foods-could-be-cheaper-than-most-grocery-stores-2018-5-1023168688">Amazon has been increasing its footprint in groceries</a>, and its tech-minded approach is <a href="http://markets.businessinsider.com/news/stocks/amazon-stock-price-amazon-has-created-a-tipping-point-in-online-groceries-2018-4-1022012798">forcing most grocers to adapt</a> in an increasingly competitive environment. "Walmart is still a distant second in what we see as a two player omni-channel race in the US market," Gutman said. Instead of allocating that cash to international ambitions, Gutman said, Walmart should have used it to optimize its third-party marketplace capabilities in order to compete with Amazon. Still, there is an argument to be made for Walmart's Flipkart investment. While profitability isn't on the cards in the short-term, Gutman sees a long-term growth story in India for Walmart. "India represents a massive long-term opportunity," he wrote. "The Flipkart acquisition effectively prevents AMZN from gaining an insurmountable advantage in this important market."Walmart is down 15.29% on the year. <div class="KonaFilter image-container display-table"><div><div class="image on-image"><a href="http://markets.businessinsider.com/stocks/wmt-stock"></a>Markets Insider</div></div></div> <div class="margin-top"> <h3>NOW WATCH: <a href="http://www.businessinsider.com/jeff-bezos-breaking-up-regulating-amazon-2018-4">Jeff Bezos on breaking up and regulating Amazon</a></h3> <div> </div> </div>

Walmart could be neglecting a key business by purchasing Flipkart

<ul><li><keyword id="225032" type="PERSON" weightage="20" keywordseo="Sachin-Bansal">Sachin Bansal</keyword>, <keyword id="6354742" type="PERSON" weightage="20" keywordseo="Flipkart">Flipkart</keyword>’s Founder, is expected to sell all his shares. </li><li><keyword id="80487" type="ORGANIZATION" weightage="100" keywordseo="walmart">Walmart</keyword> will get 60% of the acquisition. </li><li>The remaining 15% will go to <keyword id="6357623" type="ORGANIZATION" weightage="20" keywordseo="alphabet">Alphabet</keyword>, Google’s parent company. </li></ul> One of the largest acquisitions involving an Indian company might be finalised as soon as <a href="https://www.moneycontrol.com/news/business/walmart-to-likely-announce-flipkart-deal-this-week-may-acquire-70-75-stake-2564503.html">tomorrow</a>. American multinational retail corporation Walmart has been in the process of acquiring Flipkart, India’s second largest e-commerce portal, for a while and it seems the deal may finally be made official tomorrow. <a href="https://www.businessinsider.in/Sudden-dust-storms-in-northern-India-have-killed-over-120-people/articleshow/64027810.cms">Reports</a> last week indicated that Flipkart’s board approved the deal for Walmart to acquire 75% of the company. Keep in mind that Walmart isn’t alone in this venture. While the company will get around 60% stake in Flipkart, Google’s parent company, Alphabet, will get the other 15%. Overall, this is expected to be a $3 billion dollar expense between the two. Walmart is expected to get three seats on Flipkart’s board of directors. The company will also have a say in the how Flipkart handles it’s financial and legal matters, a source told <a href="https://www.ndtv.com/india-news/walmart-likely-to-announce-flipkart-deal-by-this-week-report-1848670">NDTV</a>. Winds of change Sachin Bansal, Flipkart’s founder, is set to leave the company altogether. As per reports, Flipkart’s co-founder will sell his 5.5% stake in the company to Walmart, resulting in around $1 billion. Sources revealed to <a href="https://timesofindia.indiatimes.com/people/sachin-bansal-to-sell-entire-5-5-to-walmart-as-he-exits-flipkart/articleshow/64073757.cms">Times of India</a>, that Bansal “wasn’t aligned with the strategy and operating structure that was being proposed post Walmart coming on board.” This isn’t entirely new information since rumours of his departure have been circling for a while. After Walmart’s acquisition comes through, <keyword id="6364080" type="PERSON" weightage="20" keywordseo="binny-bansal">Binny Bansal</keyword> will stay on as the group CEO and also be given the title of executive chairman. Kalyan Krishnamurthy, Flipkart’s current CEO, will also stay with the company but won’t have a seat on the board. Sachin Bansal won’t be the only one leaving. <keyword id="163404" type="ORGANIZATION" weightage="20" keywordseo="Softbank">SoftBank</keyword>, currently Flipkart’s largest investor, is rumoured to want to back out as well, that too completely. Even Tiger Global and Accel, two other investors, maybe looking to sell a majority of their stakes.

Walmart might announce acquisition of Indian e-commerce giant tomorrow

Acquisition in eCommerce sector is the trend these days. As India’s eCommerce is in its maturation period, there are two things happening- acquisition and funding. Soon after Snapdeal acquiring mobile recharge platform Freecharge, rival <keyword id="6354742" type="COMPANY" weightage="20" keywordseo="Flipkart">Flipkart</keyword> has announced the acquisition of <keyword id="2829367" type="UNKNOWN" weightage="20" keywordseo="appiterate">Appiterate</keyword>, a mobile engagement and marketing automation company based out of Delhi. 
 
Strategically operating Appiterate targets consumers and increases sales of eCommerce by using push notifications and inapp messages. 
Nishant Verman, Senior Director, Corporate Development-Flipkart told The Economic Times, "Their innovative platform and tech team will bring deep mobile capabilities to the table which is a key focus area for Flipkart." 
 As per a news report by the ET, Appiterate, which started out as a testing platform for mobile apps had raised more than $500,000 from SAIF Partners &amp; angel investors, including former <keyword id="6354576" type="CITY" weightage="20" keywordseo="Facebook">Facebook</keyword> VP of Engineering &amp; Products, Greg Badros and LimeRoad CTO <keyword id="289857" type="PERSON" weightage="20" keywordseo="Prashant-Malik">Prashant Malik</keyword> in 2014. 
 
The Appiterate team will join Flipkart, Tanuj Mendiratta, co-founder and CEO, Appiterate has confirmed. Appiterate's mobile marketing automation platform will be integrated into Flipkart's mobile app for better targeting. 
 Flipkart has also said in the near future, it will become a mobile only company. eCommerce firms in India have been increasingly focussing on pushing their mobile app. Online travel company Cleartrip, for instance, said on Wednesday that over 53% of its traffic now comes from the mobile. A majority of customers for <keyword id="18635" type="CITY" weightage="20" keywordseo="Amazon">Amazon</keyword>, Snapdeal and Paytm are also mobile. 
 
(Image: india times)

Flipkart acquires Appiterate. Is it readying for ‘mobile only’ operation?

<ul><li><keyword id="80487" type="COMPANY" weightage="20" keywordseo="walmart">Walmart</keyword> likely to purchase 75% stake in <keyword id="6354742" type="COMPANY" weightage="20" keywordseo="Flipkart">Flipkart</keyword>, making it the largest <keyword id="30334" type="ORGANIZATION" weightage="20" keywordseo="acquisition">acquisition</keyword> deal for the company. </li><li>Alphabet Inc., Google’s parent company may also be looking to invest in Flipkart. </li><li><keyword id="225032" type="PERSON" weightage="20" keywordseo="Sachin-Bansal">Sachin Bansal</keyword>, Flipkart co-founder, might be stepping down.</li></ul>Update: Flipkart's board has <a href="https://www.bloomberg.com/news/articles/2018-05-04/flipkart-board-is-said-to-approve-15-billion-deal-with-walmart" data-type="tilCustomLink">reportedly</a> approved a deal for Walmart to acquire 75% of the Indian e-commerce company. The Walmart-Flipkart drama deal is <a href="http://www.bgr.in/news/walmart-acquires-flipkart-buys-73-percent-stake-usd-14-billion-amazon-binny-sachin-bansal-ceo-kalyan-krishnamurthy/">reportedly</a> finalised. The American company has apparently agreed to purchase a 73% stake in the Indian online shopping portal, taking Flipkart’s <a href="https://factordaily.com/walmart-to-buy-73-per-cent-of-flipkart/">valuation</a> to somewhere between $20-22 billion. This means the American giant will be spending at least $14.6 billion in the cash-and-stock buyout. Both the companies have signed tentative agreements on May 3, 2018, and the deal will apparently involve a mixture of cash and stock, with the cash component amounting to around 55%. Event Alphabet Inc., Google’s parent company, might a part of this agreement by way of a $3 billion investment. But there’s more to this merger than just the two company’s coming together. While <keyword id="6379357" type="PERSON" weightage="20" keywordseo="kalyan-krishnamurthy">Kalyan Krishnamurthy</keyword> will continue as Flipkart’s CEO, the company’s founder, Sachin Bansal will <a href="https://economictimes.indiatimes.com/small-biz/startups/newsbuzz/walmarts-entry-into-flipkart-may-see-sachin-bansals-exit/articleshow/64023197.cms?from=mdr">probably</a> be stepping down. Not only will he be leaving the company’s day-to-day activities, he will also be giving up his seat on the board of directors. Co-founder, <keyword id="6364080" type="PERSON" weightage="20" keywordseo="binny-bansal">Binny Bansal</keyword>, will probably remain after the merger since reports have indicated that Walmart is keen on keeping one of them. The Walmart-Flipkart deal has ruffled a lot of feathers but despite the turn out, the company’s biggest investor, <keyword id="163404" type="COMPANY" weightage="20" keywordseo="Softbank">SoftBank</keyword>, will be leaving the foray. They weren’t particularly amped about the deal when it was being initiated and now that it seems to be final, SoftBank plans on selling off its 25% stake in the company to earn nearly $5 billion. Essentially, SoftBank’s doubled their investment of $2.5 billion in less than a year. Flipkart’s other investors, like Tencent, Microsoft and Tiger Global aren’t looking to cash out just yet. The conclusion of this deal will ideally result in one of the largest acquisitions involving an Indian company. It will also be one the biggest acquisition deals by Walmart.

Indian unicorn Flipkart's board approves $15 billion deal with Walmart

In what is being termed as the biggest acquisition ever in the Indian e-commerce space, online retailer <keyword id="6354742" type="COMPANY" weightage="100" keywordseo="Flipkart">Flipkart</keyword> has bought out fashion e-tailer <keyword id="319719" type="COMPANY" weightage="100" keywordseo="Myntra">Myntra</keyword>.com. The move is being seen as a response to counter its fast-growing rival <keyword id="541988" type="COMPANY" weightage="60" keywordseo="SnapDeal">Snapdeal</keyword>. 
 
Although it was not officially confirmed, analysts’ speculations pegged the buyout at over $300 million. 
 
However, both companies will work independently for now and there is no immediate plan to merge their fashion businesses. 
 
As per the deal, Myntra CEO Mukesh Bansal will join Flipkart’s board and will head the fashion vertical at both Flipkart and Myntra. While Myntra employees will ‘remain in current positions,’ they will also be offered stock options in Flipkart. 
 Flipkart co-founder <keyword id="225032" type="PERSON" weightage="100" keywordseo="Sachin-Bansal">Sachin Bansal</keyword> insisted that it was a ‘completely different acquisition story’ as it was not ‘driven by distress.’ The heads of both the companies said they were scripting “one of the largest e-commerce stories.” 
 
According to Mukesh Bansal, Myntra alone holds 30% of the market share and together, both the companies will account for 50% of the online fashion market. “We hope to take this figure to about 60-70% in the long term,” he said. 
 
Sachin Bansal further said that Flipkart would invest $100 million in its own fashion vertical in the near future.

Flipkart Acquires Fashion E-tailer Myntra For $300
Million

<div class="KonaFilter image-container display-table"><div><div class="image"></div></div></div><ul><li>Walmart purchased Flipkart in 2018 for $16 billion as a way to break into the growing Indian e-commerce market. It marked the biggest acquisition in the retailer's history.</li><li>Flipkart is planning to spin off its digital payments platform, PhonePe Pvt Ltd., into a separate entity.</li><li>The stand-alone company is exploring a $1 billion capital raise at a valuation that could reach $10 billion, according to a <a href="https://www.bloomberg.com/news/articles/2019-07-09/walmart-payment-unit-is-raising-funds-at-up-to-10-billion-value" target="_blank" rel="noopener">Bloomberg report</a>.</li><li><a href="https://markets.businessinsider.com/">Visit the Markets Insider homepage for more stories</a>.<a href="https://markets.businessinsider.com/"></a></li></ul>When <a href="https://markets.businessinsider.com/stocks/wmt-stock">Walmart</a> dropped $16 billion on Indian e-commerce giant Flipkart last year in its biggest-ever acquisition, it didn't expect to also scoop up a startup worth as much as $10 billion.Flipkart's board of directors is exploring a spin-off of PhonePe Pvt Ltd., a digital payments subsidiary, in a transaction that would seek $1 billion in funding for the venture, according to a <a href="https://www.bloomberg.com/news/articles/2019-07-09/walmart-payment-unit-is-raising-funds-at-up-to-10-billion-value">new report from Bloomberg</a>. Bloomberg reported the unit could achieve a valuation of as much as $10 billion, or almost two-thirds of what Walmart paid for Flipkart initially. The funding round has not been finalized yet, according to Bloomberg's sources, but the deal could be closed in the coming months.<a href="https://www.surveymonkey.com/r/BI-Young-Investor-Panel" target="_blank" rel="noopener">Markets Insider is looking for a panel of millennial investors. If you're active in the markets, CLICK HERE to sign up.</a>If the deal is completed, PhonePe Pvt would become a stand-alone company with its own group investors, and Flipkart will remain a shareholder. PhonePe Pvt has developed into one of India's dominant digital payments providers as the service's transaction volume and value has increase four-fold over the past year, according to Bloomberg. Edward Yurma, an analyst at KeyBanc Capital Markets, said PhonePe could be valued up to $15 billion, Bloomberg reported. Walmart bought Flipkart in an attempt to push further into ecommerce and compete with the likes of Amazon. Walmart's stock is up 22% year-to-date.Now read more markets coverage from Markets Insider and Business Insider:<a href="https://markets.businessinsider.com/news/stocks/earnings-season-forecast-bank-of-america-predicts-better-than-expected-2019-7-1028339402?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest" target="_blank" rel="noopener">Wall Street is expecting the worst this earnings season. But Bank of America says traders will be pleasantly surprised.</a><a href="https://markets.businessinsider.com/news/stocks/disney-plus-streaming-offering-could-beat-netflix-analyst-says-2019-7-1028347028">Disney's 3-part streaming offering will be a strong bet for investors who want the best contender to Netflix, analyst says</a><a href="https://www.businessinsider.com/leaked-memo-deutsche-bank-research-layoffs-2019-7?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest" target="_blank" rel="noopener">Leaked memo shows how Deutsche Bank spared its research department, even as the industry braces for a brutal future</a><div class="KonaFilter image-container display-table"><div><div class="image"><a href="https://markets.businessinsider.com/stocks/wmt-stock"></a></div></div></div><a href="https://www.businessinsider.com/intelligence/future-of-retail?IR=T&amp;itm_source=businessinsider&amp;itm_medium=ctgr_bii&amp;itm_term=ctgr_leadgen&amp;itm_content=walmart&amp;itm_campaign=future-of-retail"></a>

Walmart's record-setting Flipkart acquisition contained a hidden gem that could be worth up to $10 billion

<ul><li>The <keyword id="5189" type="ORGANIZATION" weightage="20" keywordseo="competition">Competition</keyword> Commission of India (<keyword id="47183" type="ORGANIZATION" weightage="20" keywordseo="CCI">CCI</keyword>) has approved <keyword id="80487" type="COMPANY" weightage="20" keywordseo="walmart">Walmart</keyword>’s <keyword id="30334" type="ORGANIZATION" weightage="20" keywordseo="acquisition">acquisition</keyword> of a 77% stake in <keyword id="6354742" type="COMPANY" weightage="20" keywordseo="Flipkart">Flipkart</keyword>. </li><li>The deal, which is slated for completion next year, will be one of the largest in India’s corporate history. </li><li>The greenlight marks the culmination of three months of deliberations by the CCI over the validity of the deal.</li></ul>The investors of Flipkart can rejoice for they’re about to earn a very handsome profit on their investment in the Indian e-commerce platform. The Competition Commission of India (CCI), the country’s competition and antitrust regulator, has approved Walmart’s $16 billion acquisition of a 77% stake in Flipkart, paving the way for the deal to be completed by mid-2019. The deal is the one of the largest in the history of India’s private sector. 
 
 
 
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 The greenlight marks the culmination of three months of deliberations over the validity of the deal. Reports surfaced in June that the regulator would impose structural changes to the deal to alleviate antitrust concerns. An example of this was the possible establishment of a long-term fund to support small businesses and kirana stores. Walmart announced the acquisition in May 2018. However, the deal has received a lot of backlash from industry bodies, specifically the Confederation of All India Traders (CAIT), which said that the deal would <a href="https://www.businessinsider.in/indias-small-businesses-are-against-walmarts-acquisition-of-flipkart/articleshow/64064439.cms">hurt competition and encourage “predatory pricing” tactics</a> and loss leadership in India’s e-commerce market. In its ruling, the CCI expressed its concern at the habits of deep discounting and preferential access to sellers that are so intrinsic to the industry. However, it said that these habits did not have a bearing on whether or not the deal should be approved. The CCI added that the deal would not “adversely affect competition” in the sector. In response to the <keyword id="49677" type="CITY" weightage="20" keywordseo="approval">approval</keyword>, the CAIT has said it will file an appeal in court. However, the CCI’s decision is likely final. As per the Indian government’s draft e-commerce policy, a regulator will be established for the sector. The policy also calls for the localisation of data, the increased participation of small businesses on online retail platforms and limits the amount of influence a platform has on cutting prices by preventing bulk purchases of goods from third-party sellers and introducing a pre-determined discount window. Next steps for Walmart and Flipkart With the deal sealed, Walmart is expected to send a large group of senior executives to India to oversee the merger and analyse the Indian market. It will also onboard a number of private labels and vendors to Flipkart’s platform. Meanwhile, Flipkart is readying the rollout of its online grocery operation - Supermart. It will reportedly <a href="https://economictimes.indiatimes.com/small-biz/startups/newsbuzz/flipkart-has-a-264-million-plan-for-grocery-store-supermart/articleshow/65331338.cms">invest $264 million</a> in the business over the next three years. After launching in Bengaluru earlier this summer, the service is expected to go live in Delhi, Chennai and Hyderabad by the end of 2018.

India’s competition regulator has given the Walmart-Flipkart deal a greenlight

<ul><li>Competition heats up after <keyword id="80487" type="COMPANY" weightage="20" keywordseo="walmart">Walmart</keyword> closes its $16 billion acquisition of <keyword id="6354742" type="COMPANY" weightage="20" keywordseo="Flipkart">Flipkart</keyword>.</li><li>Alibaba and <keyword id="18635" type="CITY" weightage="20" keywordseo="Amazon">Amazon</keyword> are said to be eyeing large investments of their own.</li><li>Conventional retail and <keyword id="35621" type="PERSON" weightage="20" keywordseo="e-commerce">e-commerce</keyword> players are coming together for a hybrid online-offline business model.</li></ul>A turf war is about to break out among Walmart, Amazon Inc. and <keyword id="163405" type="COMPANY" weightage="20" keywordseo="Alibaba-Group">Alibaba Group</keyword> as the retail giants make aggressive moves to expand into <keyword id="3658" type="COUNTRY" weightage="20" keywordseo="India">India</keyword>. And it is highly likely that this will lead to a massive shakeup of the Indian retail space. Last week, Walmart said it had <a href="https://www.businessinsider.in/indias-competition-regulator-has-given-the-walmart-flipkart-deal-a-greenlight/articleshow/65337242.cms">closed</a> the $16 billion (₹1,118 billion) deal to buy the majority (77%) of Flipkart, India’s largest e-commerce company, following regulatory approval. This is Walmart’s biggest acquisition till date. In its aftermath, Alibaba and Amazon are said to be eyeing large investments of their own, according to media reports. Alibaba is said to be <a href="https://www.livemint.com/Companies/1mvbhDUjZd9khrSUroW5MM/Alibaba-may-invest-5-billion-in-JV-with-Reliance-Retail.html">considering</a> a $5 billion (₹350 billion) investment into a joint venture with <keyword id="58448" type="COMPANY" weightage="20" keywordseo="Reliance-Retail">Reliance Retail</keyword>, India’s largest retailer in terms of sales, in part to take on competition from Amazon and Flipkart. While Amazon, along with co-investors, is mulling an investment in the Aditya Birla Group-owned grocery chain, More, for an enterprise valuation between ₹45 billion and ₹50 billion. Alibaba has reportedly also held talks with other Indian retail chains including Future Retail. In the past few years, Amazon has pumped in over $5 billion into India, its fastest growing market. Amazon and Walmart have been in fierce competition in their home market, the US, for quite some time, while Alibaba and Amazon are head-to-head in China. Some fear that Walmart’s push into India could potentially have an adverse impact on the larger Indian retail space in the long term, particularly on the small brick and mortar retailers in the country. A nation-wide trade lobby group plans to protest the Flipkart acquisition by going on a nationwide strike in the coming months. Currently, over 95% of India’s consumer retail market remains unorganised, representing a huge untapped opportunity for organised retail chains. India has long restricted <keyword id="44749" type="ORGANIZATION" weightage="20" keywordseo="Foreign-Direct-Investment">foreign direct investment</keyword> in multi-brand retail to protect local grocers but allows 100% foreign direct investment in e-commerce companies that use the “marketplace” model. It is currently considering bringing in regulation for the e-commerce space and according to a recent draft proposal, may allow 49% foreign investment in e-commerce companies that use the inventory model. Walmart in its recent statement said its future investments into India will be directed at supporting farmers, supply chain development and reducing food waste. Strategy shift: Going hybrid Walmart’s acquisition of Flipkart and Amazon’s interest in More are the latest examples of large retailers adopting a hybrid business model of offline and online after years of experts predicting the disruption of traditional retail by e-commerce companies. Alibaba and Amazon have recently been focusing heavily on offline and online in their home markets – Amazon with its acquisition of grocery chain Whole Foods and Alibaba’s ‘New Retail’ strategy, which combines e-commerce and conventional retail in China. That rationale appears to be flowing down into their India strategy as well, points out Mrigank Gutgutia, engagement manager with RedSeer Management Consulting. Amazon also owns a 5% stake in Indian brick and mortar retail chain Shoppers Stop. While the Walmart-Flipkart deal is certainly encouraging for e-commerce players, even after 10 years and 100 million shoppers, Indian e-tailers have thus far managed to penetrate only about 2.7% of the overall Indian retail market, indicating the pressure to diversify their reach, notes Gutgutia. “While e-tailers have got their growth mojo back, everyone is starting to realise that pure online models will only let them capture limited pie,” said Gutgutia. “There is a need for change,” he added. Overall, as Indian e-commerce market matures further, e-tailers are realising that pure discount-driven models are no longer going to work. “What is needed is genuine innovation to cater to specific traits and needs of Indian buyers -- especially in offline-heavy categories like fashion and grocery,” said Gutgutia. According to RedSeer, this multi-channel approach will become dominant among organised retail players in the coming years, particularly for e-commerce players. Other e-tailers who have ventured into offline include furniture retailer Pepperfry with its studios and fashion retailer Myntra's Roadster stores. Regardless of how the investment landscape pans out and who buys whom, and as competition gets more intense for existing e-commerce and offline retailers, ultimately shoppers and customers are expected to win. As for small retailers, Gutgutia says they could see a positive impact if they work on a partnership model with organised retailers.

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