What you are going to Take Away from Flipkart Walmart Deal?
How Much amount is this?
10,76,24,00,00,000.00 Indian Rupees
This is the Deal Amount of Walmart Flipkart for 77% Share.
What More to Know about the acquisition of Flipkart by Walmart?
Walmart buying 77% share of Flipkart which amounts to Rs. 1,07,624 crore is the biggest acquisition in the history of e-commerce Industry. Everybody is talking about this deal and is unable to conclude whether this deal is good or not.
This deal also opened the gate for American giant Walmart to enter into Indian market which they were looking for a long time. So let us discuss the top 10 outcomes from Walmart-Flipkart deal and what they will bring in the future.
Sachin Bansal the Co-founder of Flipkart resigns by selling his 5.5% Share and Enjoying the big Flipkart Walmart Deal. While Binny Bansal the Founder of the Flipkart will be the New CEO of the Flipkart and Looking for more Growth in Near Future.
Now let’s Discuss in Detail.
Outcomes of Flipkart Walmart Deal
Flipkart Started @ 4 Lakh only in 2007
The first talking point about this deal is that Flipkart started with just Rs. 4 lakh in 2007 and after 11 years they had become a billion dollar company. Currently, Flipkart sold 77% of its share for a whopping Rs. 107624 crore. This acquisition just gives a glimpse of how e-commerce industry is growing.
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Walmart is Big Giant:-
Walmart was in India for the past 11 eleven years, but they failed to create an impression in the market. Walmart is known as big fish and has a reputation for eating up small fish. But in the past few years, they have significantly failed to do so. This deal might bring Walmart back into the picture they might emerge as a giant in the Indian market also.
Competition between Amazon and Walmart:-
There was a two-way competition of buying Flipkart shares. It was between the two American giants Amazon and Walmart. Amazon has already created its impact in the e-commerce sector in India. But now Walmart acquiring Flipkart will lead to a two-way competition of American giant in the Indian market. This may take the e-commerce industry to a whole new level.
Another way to look at this deal is that Walmart would have struggled to open an e-commerce website because of the government policy. Indian government does not allow foreign investment in online retailing. So this was the best method to enter into online retailing in India.
A motivation for New Comers into E-commerce Industry:-
This deal will now motivate youngster to open their start-up. They can see that what start-up can lead to. How big it can grow. So more and more new opportunity will grow in the minds of youth and this is a plus point for India.
Impact on Small Producers and Sellers:-
Small consumers and producers are having a fear. Plus some small start-ups are also having a fear that Walmart and Amazon two giants will be wiped out the Industry. As it will be a lot difficult to compete against the two big companies.
What is the Benefit to the investors in Flipkart?
Another important point to note down is that Walmart invested $16 billion in acquiring Flipkart. But this money will not help for Indian consumers and producers. Because most of the investors of Flipkart were the foreign investment so Indian consumers and producer did not get the benefit. If they would have directly invested in the Indian market then it would have been a plus point.
Increase in Employment in India:-
From the employment point of view, it is good news for India. As we know that Walmart is the largest employer in the world in private sector. So if Walmart grows in Indian market it will definitely go to hire Indian workers so this will increase the employment which is a big concern in India.
Opportunity for the Indian manufacturer:-
Walmart presents a good opportunity in the future. It has a policy of buying 90% of the goods from the local market. So people will get benefit from it. Especially the manufacturers.
Flipkart Walmart now grow their reach in Deep:-
From Walmart point, this deal is already a success for them. As they have defeated their fellow American rival Amazon to acquire Flipkart. If they would have missed this opportunity and Amazon would have acquired Flipkart then Walmart would have to wait for few more years to make it presence felt in the Indian market.
The much-awaited deal is finally over. They have once again proved that they are giant and a leader in the retail sector. So let wait for the future and wait for the right time then only we can properly say whether the deal is good or not. Above are the Top 10 outcomes of Flipkart walmart Deal and many more outcome may come in the future.