RSS-affiliate Swadeshi Jagran Manch on Wednesday objected to USA global retail giant Walmart's bid for "backdoor, barge entry into India through the proposed e-commerce route by buying controlling shares in Flipkart".
SoftBank made a 60% return, netting $ 4 billion on a $2.5 investment made in August 2017, as we mentioned earlier. South African internet and entertainment firm Naspers, which had invested United States dollars 616 million in Flipkart in August 2012, sold its entire 11.18 per cent stake in the company to Walmart for USD 2.2 billion.
"Flipkart will diversify its inventory to attract more Indian consumer segments that haven't started shopping online", said Lee.
Sources close to the matter claim that Amazon India is already busy chalking extensive plans on how to combat the rejuvenated Flipkart post Walmart deal.
Putting up a courageous face, Biyani said to the newspaper that Future Group has a lead over other retailers in the country and he can shore up his company's strength as India played host to the world's biggest e-commerce deal.
There's also the government to consider, as the contract is subject to regulatory approval. Although India's population is rapidly coming online, the number of people with enough income to shop online is still tiny. So far it had been handicapped by Indias retail policy that does not allow overseas companies to sell directly to consumers (except in wholesale cash-and-carry segment). Walmart owns a 12.1% stake in Tencent subsidiary JD.com, China's second largest e-commerce company. It could potentially use those Best Price stores as pickup and delivery points.More news: Congress trying to rig Karnataka Assembly elections: BJP chief Amit Shah
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"India is one of the most attractive retail markets in the world, given its size and growth rate, and our investment is an opportunity to partner with the company that is leading transformation of eCommerce in the market", said Walmart President and CEO, Doug McMillon. "So, I wanted to write to you personally to celebrate the news, fill you in on what this investment means, and whether there are going to be any changes in your relationship with Flipkart", he added.
Walmart's billion dollar deal puts a curtain down on the Bhansal era in Flipkart.
The announcement also shows that a late, albeit unconfirmed, bid for Flipkart by Amazon, was rejected. The deal will see Walmart increase its foothold in Indian eCommerce, a market which is expected to surge in the next decade.
Flipkart was founded in 2007 by former Amazon employees Sachin Bansal and Binny Bansal, who are not related. In fact, the acquisition of Flipkart spooked Walmart's investors and wiped away more than $10 billion of the American retail giant's market value, while Amazon's shares actually closed up 1% on Wednesday.
However, the deal will come at a cost to Walmart.