Amazon had also tried to make a competing offer
Walmart has agreed to pay $16bn for around 77 per cent stake in India’s leading online retailer Flipkart.
The deal, which reportedly values Flipkart at $20.8bn, will help the retailer fortify and boost market share against Amazon.com, which reportedly had tried to make a competing offer for a stake.
“India is one of the most attractive retail markets in the world, given its size and growth rate, and our investment is an opportunity to partner with the company that is leading transformation of e-commerce in the market,” Doug McMillon, Walmart’s Chief Executive Officer, said in a statement today.
Flipkart’s strong presence in sectors such as fashion, electronics and digital payments were major factors behind Walmart’s decision to buy the company, McMillon added.
Buying a stake in Flipkart gives Walmart access to the fledgling Indian e-commerce market that could potentially be worth $200 billion in a decade, according to Morgan Stanley.