Amazon Seems To Bid For Flipkart But Flipkart Wants To Tie Up With WalmartKarthick (Author) Published Date : Apr 04, 2018 18:17 IST
Jeff Bezos, the world's richest man and the founder & CEO of Amazon made his company to surpass Walmart, the most valuable retailer in the USA in 2015. Presently, it is said that Amazon is in talks with Flipkart for buying the majority stake of Flipkart which occupies 40% of India's Online retail market after acquiring Myntra and Jabong, the online fashion retailers.
Though Amazon is a big retail giant in the USA, it is only the second-largest contributor of online sales holding 31% of the online retail market next to Flipkart which was founded by former Amazon employees Sachin Bansal and Binny Bansal in 2007. Like Amazon, Flipkart also began as an online bookseller and later diversified to electronic commodities competing with Amazon.
Due to losses in 2016, Flipkart was valued less and the company's debt was declared as worthless assets by its creditors, but with the efforts of Kalyan Krishnamurthy who was brought in by Tiger Global Management, Flipkart's major investor. Then, Flipkart came back competing with Amazon and Krishnamurthy was made the CEO in January 2017. Now, Flipkart is determined to sell a majority of its shares.
A recent report says that Amazon wants to buy Flipkart shares up to 55% at a purchase price of $20 billion and wishes to be a monopoly in the Indian online retail market. Apart from Amazon, there was a buzz in February about Google offering for $15 billion dollars to invest in Flipkart. But, Flipkart seems to deny the offer of its Indian rival Amazon and wants to tie-up with Walmart who had lost its market to Amazon in the USA. Walmart would also aspire not to yield the Indian market capitalisation of Flipkart to its US rival Amazon.
According to the recent reports from trusted sources, Walmart would buy the majority of shares of Flipkart valuing up to $21 billion through primary and secondary purchases.
Meanwhile, Flipkart's largest and long-term investor Softbank does not want to sell the company for money at an early stage.
Amazon Seems To Bid For Flipkart But Flipkart Wants To Tie Up With Walmart