In the year 2007, Flipkart was founded which had a revolutionary impact in the field of e-commerce in India. Founded by Sachin and Binny Bansal, they initially started off with selling books. Gradually they expanded their range of products and their logistic department eKart has control over 800 cities across India and makes about 500,000 deliveries every day. By the year 2022, it is estimated that the online sales will exceed $73 billion. In India, Flipkart’s biggest competitor is Amazon and which sees India has a favourable market.
Recently, Walmart had shown its interest about entering the Indian market. Following that they invested $16 billion into the company and became the largest shareholder, holding 77% of the shares of Flipkart. Of that investment, $2 billion was made into an equity fund that would provide help Flipkart’s business grow rapidly. There will be co-existence of both the brand names and the operational units of the companies. As for the finances, Flipkart’s gains will be considered as a part in Walmart’s business.
The ongoing teams of Flipkart would continue to work in the same fashion. The 77% of the business will be represented by TenCent Holdings Limited, Tiger Global Management, the independent board members and the new members from Walmart. The rest part of the business will not have Walmart’s name on the board.
The idea behind this was to stand ahead of the competition among rivals like Amazon. Together they would provide better quality services and products. They would combine their knowledge and promote their growth along with the growth of the Indian economy.