Flipkart co-founder Sachin quits after Walmart deal

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Walmart finally closed the deal with Flipkart for United States dollars 16 billion, after weeks of rumours and speculations, as it plans to take on rival Amazon in one of the fastest growing markets.

This is the second major global deal for Walmart in as many weeks, with the firm having sold its United Kingdom subsidiary, Asda, to Sainsbury's on April 30.

Walmart chief executive Doug McMillon played down not being able to meet either Prime Minister Narendra Modi or any senior minister after announcing the world's biggest e-commerce deal, saying he has had meetings with officials in the past and would have them in future as well.

The US bricks and mortar retail giant bested its US counterpart Amazon after the ecommerce firm reportedly made a competing offer to acquire Flipkart that ultimately failed.

Flipkart which gained as much as 50 percent on a YoY growth, will still be lead by their CEO, Binny Bansal, as the other founders step down from the once small startup. Reuters has reported Google-parent Alphabet may buy a roughly 15% stake in Flipkart for $3 billion.

Walmart closed 60 stores in Brazil, 10 percent of its outlets, two years ago and is trying to restructure its business.

"This investment is of huge importance for India and will help fuel our ambition to deepen our connection with buyers and sellers and to create the next wave of retail in India", said Binny Bansal, one of the original founders of Flipkart.

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What does it mean for Indian e-commerce? Walmart now operates 21 Best Price cash-and-carry stores and a fulfillment center in 19 cities across nine states in India, which will continue to be led by Krish Iyler, President and Chief Executive Officer of Walmart India.

Retailers Association of India (RAI) said that e-retail companies have been violating FDI policy for marketplaces in India, according to media reports.

Flipkart is leading in the fashion segment through the acquisition of Myntra, Jabong and eBay (Indian wing), the online fashion portals. Now the story changes though, from an Indian and American firm fighting it out, to India being the new battleground for the Walmart vs Amazon contest.

Krish Iyer, Walmart India's president and CEO, on Thursday told Press Trust of India: "We now have 21 stores and plan to open 50 stores in four to five years".

"Therefore, being the controller of the company, Walmart may use the data and other information as per its will and wish and the possibility of compromising the data cannot be ruled out", he said, according to the statement.

"We all know that they have interests in the multi-brand retail of food and a combination of both will kill the interests of farmers", he said. Big players like Sequoia Capital had passed up on the opportunity to invest in Flipkart several times. Flipkart will be the centrepiece of its global e-commerce ambitions as the full potential of the Indian market is yet to be realized and there is enormous scope for growth.