Walmart Inc. and Flipkart Group today announced that the acquisition transaction has now been completed making Walmart the largest shareholder in the Flipkart Group. Walmart back in May had announced that it is acquiring 77% stake in Flipkart for $16 billion. This partnership to leverage combined synergies, including market insights, retail expertise and local and global supply-chain knowledge.
Furthermore, as Walmart scales in India, the company will continue to partner to create sustained economic growth across agriculture, food, and retail. The investments by Walmart will support national initiatives and will bring sustainable benefits in jobs creation, supporting small businesses, supply chain development and reducing food waste.
Flipkart’s existing management team will continue to lead the business. Tencent Holdings Limited and Tiger Global Management LLC will remain represented on the Flipkart board. In addition to independent board members, new members from Walmart will join the board. With the completion of the investment, Walmart now holds approximately 77% of Flipkart. The remainder of the business is held by other shareholders, including Flipkart co-founder Binny Bansal, Tencent, Tiger Global and Microsoft Corp.
Flipkart financials will be reported as part of Walmarts International business segment. Both companies will retain their unique brands and operating structures in India.
Judith McKenna, president, and CEO of Walmart International said:
Walmart and Flipkart will achieve more together than each of us could accomplish separately to contribute to the economic growth of India, creating a strong local business powered by Walmart. Our investment will benefit India by providing quality, affordable goods for customers while creating new skilled jobs and opportunities for suppliers. As a company, we are transforming globally to make life even easier for customers, and we are delighted to learn from, contribute to and work with Flipkart to grow in India, one of the fastest-growing and most attractive retail markets in world.
Binny Bansal, Flipkart’s co-founder, and group chief executive officer said:
We are poised and ready to deliver the full value of this partnership for India. By combining Walmart’s omnichannel retail expertise, supply-chain knowledge and financial strength with Flipkart’s talent, technology and local insights, we are confident that together we can drive the next wave of retail in India.