Walmart Acquires Flipkart
Had you listen that Walmart buys the 77% of the stake in Flipkart. This is the biggest E-commerce Deal Ever.
As Walmart buys Flipkart stake for $16 Billion. Insights of Walmart Flipkart e-commerce Deal for $16 Billion
Flipkart is a company which started from two room set and now it is in news for biggest ever deal.
With this Deal, Walmart enters into the online E-commerce business in India.
Now let’s first look at the History of Flipkart and Walmart.
Flipkart was launched in the year 2007 in India. Their founder Sachin Bansal and Binny Bansal were employees of Amazon.com in the USA. They saw that e-commerce was quite successful in the USA and not in India.
So they had a dream to launch an E-commerce website in India and they took a risk by quitting their job and started their own e-commerce website FLIPKART. Initially, it was just launched as a book selling platform just like Amazon.
At that time who think that Flipkart – Walmart deal will be done @ $16 billion
When Flipkart was launched in India the mindset of the people was not ready to accept it. People feared that they will not receive correct product or when they make the payment they will not receive the product. But somehow Flipkart managed to won hearts of the people and made Flipkart a successful e-commerce website in India. Many e-commerce companies followed the footsteps of Flipkart after seeing their success.
After a decade-long effort, Flipkart is now valued at $20 billion company. It is one of the leading e-commerce websites in India only behind Amazon which is the leader in the world in an e-commerce website.
Walmart was introduced in the year 1969 and it is the largest American retail. Walmart has been world largest retail store and it is operating in 28 different countries. Walmart is the largest company in term of revenue and it is also the largest company in terms of the private employer.
Walmart is the leader in retail and hypermarket section. After its incorporation in 1969, it only moved towards growth. In 1990 it gained multinational status when it opened a store in Mexico and then Canada. By 1995 it moved to South America and started gaining reputation from the world.
As of now, Walmart is approximately $500 billion company. It has 11718 stores located worldwide.
The biggest Acquisition in the history of E-commerce Industry
E-commerce industry in India has seen a huge amount of growth in the last decade With the advancement in technology and increase in the usage of internet people are shifting from offline towards online. People prefer the go habit.
— EcomSewa (@EcomSewa) May 10, 2018
People now save a lot of time while working online. For example, previously when any customer wanted to buy any product they had to take their time out goes to the shop and then buys it. But in case of online, they can order a product anywhere anytime and it will be delivered at their doorstep. If they do not like a product they can even return the product. So this is the advantage of going online for which both the customers and manufacturers or retailers are getting the benefit. Thus every industry is going online or they are setting up an e-commerce website.
There were a lot of speculations over the last few months of who is going to buy the share of Flipkart. Amazon and Walmart were the top two contenders. At one point in time, it seemed that the fellow rival Amazon will overtake Walmart in buying the share of Flipkart. But Walmart had the last laugh and finally, it is confirmed that Walmart is going to buy the share of Flipkart.
Walmart buys 77% of the share of Flipkart which amounts to $16 billion. It is the biggest acquisition in the history of E-commerce. This merger is not only important because of its valuation but also because of its impact. Other e-commerce companies are worried because Walmart is a big giant and having competition with Walmart means having a hard time.
This is also a great opportunity for Walmart as they got a great opportunity in entering Indian markets which they were looking for a long time. They also won a battle with their rival Amazon. For Walmart, it is only good news for them.
So above was the Insight of Walmart Flipkart E-commerce Deal @ $16 Billion.
You too can Dream to be as big as Flipkart but for that, you have to take the first Step.
All the Best