BY,

ARITTRA KAR
SPOORTHI. S
RUCHITHA. R
 Walmart, US-based retail giant, on May 9th 2018, acquired a 77 per cent controlling
stake in the Indian e-commerce company Flipkart for $16 billion.

 The deal has helped Flipkart leverage Walmart’s Omni-channel retail expertise and
general supply chain knowledge.

 Walmart has a strong global physical presence in retail space but lacks in e-
commerce. This deal has spurred their online presence in Indian markets.

 After Walmart bought the controlling stake, Flipkart is valued at more than $20bn.

 Flipkart founder Sachin Bansal has now exit completely. He has sold Walmart his
entire 5.5% stake.
WHAT FLIPKART GAINS?
 The company will shed its start-up tag and become part of a global
giant.

 The deal helps Flipkart in its battle with Amazon.

 Walmart with its expertise in retail management will give Flipkart an

edge over its competition.

 Flipkart is likely to get access to newer markets including in

developed economies, thanks to Walmart.

 The infusion of fresh funds will help Flipkart expand its operation.
 Walmart has been looking to get into the India retail market for more than 15 years,
but faced FDI regulation issues. This serves as a win for the brand.

 The deal will give an international extension to the US-centric retail war between
Amazon and Walmart.

 This acquisition allows the company to jump straight into a small but growing e-
commerce market with about 100 million customers.
POSITIVE IMPACT OF ACQUISITION
ON INDIAN ECONOMY
LOW PRICES MORE VARIETY
Product differentiation
and localization has
brought more variety
RESEARCH AND DEVELOPMENT
COLLATERAL BENEFITS
ECONOMIC GROWTH
EFFICIENT SUPPLY CHAIN
JOB CREATION
 Brick And Mortar Stores May Shut Down:
 Small Players (Mom And Pop Stores):
 Threat Of Pan India Protests:
 Backdoor Entry For Walmart:
 Big Data Mining:
The take over of Walmart by Flipkart has increased the GDP growth by a strong
penetration in e-commerce. This also helps in economic growth in agriculture, food
and retail sector. Future initiatives will bring job benefits, supply chain development
and reducing food waste. Flipkart has worked to maintain their strategic and
competitive advantages according to both the companies. Walmart shares are held
by flipkart co-founder Binny Bansal, Tiger Global and Microsoft corporation. flipkarts
financials are a part of walmarts international business segment after this acquisition.