An Arkansas-based retail corporation that operates as a chain of grocery stores, Walmart to buy a majority stake of India’s largest online retailer, Flipkart and this acquisition between Walmart and Flipkart will offer new mixed on-ground-online ecosystem that difficult to replicate easily.
Chief Executive Officer at TRA Research, N. Chandramouli said, “The Walmart-Flipkart deal will be a disrupter in the online retail industry in India.” Further, he added, “Walmart’s partnership and investment in Chinese online store, JD.com, is the model that they will probably be replicating in India as well.”
The source’s information stated that the company also looking to partner with Alphabet for $20 billion which mainly includes various approvals about to take in an upcoming couple of days.
Furthermore, N. Chandramouli stated that grocery giant’s partnership with JD.com in China has curved applecart for Amazon in the country. Both the companies are looking for the same growth from its latest move which has potential to do the same.
Sources said that Flipkart recently decided buyback of shares worth $350.46 million from investors that likely aimed at paving the way for Walmart’s stake acquisition. The retail giant has earned $6.11 billion in equity funding to date.
According to the information of the source, Walmart-Flipkart deal has raised up elevated the specter of predatory pricing in the domestic online retail marketplace. The world’s largest retailer by revenue, Walmart has faced allegations of predatory pricing in its home market.