Walmart picks up 77% stake in Flipkart

  • Walmart paid $16 billion for around 77% stake in Bengaluru-based Flipkart
  • Flipkart co-founder Sachin Bansal will exit the company and sell his entire 5.5 per cent stake to Walmart.
  • Walmart had been trying to enter India for years. Strict FDI rules have so far kept its presence limited to just the cash-and-carry segment.
  • Walmart also plans to pump $2 billion (nearly Rs 13,000 crore) as fresh equity into Flipkart to strengthen its hold on the e-commerce firm.
  • Walmart shares plunged 4% and m-cap went down by $10 billion after the formal deal announcement was made.
  • Flipkart is projected to close fiscal 2017-18 at USD 4.6 billion (Rs 30,935 crore) , nearly 50 per cent higher than the previous year
  • Walmart India has aimed at opening 50 stores in the next three to four years with 15 stores to be built next year alone
  • Flipkart is first start-up to become a billion dollar company
  • Walmart's investment includes $2 billion of new equity funding, which will help Flipkart accelerate growth in the future.

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