Published on : Jan 31, 2018
Wal-Mart, one of the leading retailers in the world, has reached an advanced stage of talks to procure a minority, yet significant, stake in Flipkart, the leading e-commerce marketplace in India, a source close to the company stated. They also stated that a deal is on the way and could be finalized by the end of the Q1 of this fiscal year. A delegation, led by Doug McMillon, the CEO of Wal-Mart, met with Flipkart’s officials at their Bengaluru hub early last week as a part of this whole exercise. Marc Lore, Walmart e-commerce CEO, the founder of Jet.com, which Wal-Mart acquired in 2016, and Judith McKenna, who is slated to take over as the president and CEO of Wal-Mart International on February 1, 2017. Currently, she is the COO of Wal-Mart.
A request to comment was declined by Wal-Mart. A spokesperson stated that they cannot comment on market speculation as per the company’s policy. He further added that McMillon had been in the nation to evaluate its three units, namely, the cash and carry business, global sourcing, and global technology center. Flipkart also declined to comment. A spokesperson of Flipkart stated that they cannot comment on speculations or rumors, according to the company’s policy. However, the sources stated that if the deal materializes, Walmart may attain a 15-20% stake in the Indian retailer, permitting them to combine synergies in a bid to contest with Amazon. The deal may include primary and secondary sales by a few longstanding investors, they added.