Flipkart co-founder, chairman Sachin Bansal likely to quit after Walmart takeover
- Author: Rita Burton May 04, 2018,
May 04, 2018, 10:46
The Walmart-Flipkart negotiations have been reported by Mint and other publications for several months now.
Walmart proposed to retain Flipkart's current structure, while Amazon has made not such details known.
Emails sent to Flipkart and Walmart did not elicit any response. The deal, which will see the USA retail giant buy around 73 per cent of the Indian e-commerce company, was finally sealed on Thursday following months of negotiations.
"We do not comment on ongoing discussions and/or speculation", SoftBank said in an emailed statement.More news: Cowboys' Witten retiring after 15 seasons to join MNF
Most of Flipkart's large investors, including Tiger Global, Accel, Microsoft, Naspers and eBay, remain on Flipkart's capitalization table, although Tiger Global and Accel-Flipkart's two earliest investors-have sold a small portion of their holdings from their earlier funds as part of this deal.
According to Greyhound Research Chief Analyst and CEO Sanchit Vir Gogia, Walmart adding Flipkart to its kitty will act like a shot-in-the-arm and give it a significant up against ace competition, Amazon.
The newspaper report that Walmart wants Group CEO Binny Bansal and Krishnamurthy to have more crucial rules in the company.
The e-commerce major's investors and founders are in favour of the deal with Walmart, according to the sources. The Bengaluru-based firm had also raised funds from eBay, Tencent Holdings and Microsoft Corp past year.
Amazon has emerged as new contender for Indian e-commerce giant Flipkart.
Amazon and Flipkart are locked in an intense battle for leadership in the Indian market and have pumped in billions of dollars towards marketing and setting up infrastructure in the country. The companies are each other's rivals in the U.S. as well. Flipkart's last valuation when it raised United States dollars 1.2 billion from Tencent, Microsoft and eBay was USD 12 billion. The valuation is said to be what was making rounds on the internet, i.e. $20 Billion.