One of the most anticipated deal of the year has finally concluded on Wednesday as Walmart buys 77% stake of Flipkart for USD 16 billion which will approximately be 1,75,256 crore INR and is all set to compete another big e-commerce giant Amazon in the Indian space market.
According to the Walmart’s president and chief executive Doug McMillon said, “India is one of the most attractive retail markets in the world, given its size and growth rate, and our investment is an opportunity to partner with the company that is leading transformation of eCommerce in the market”.
The existing shareholders of the company are Flipkart co-founder Binny Bansal, Tiger Global Management LLC, Tencent Holdings Limited and Microsoft Corp.
As the part of the deal, co-founder and executive chairman Sachin Bansal will take an exit by selling his 5.5% stake and Binny Bansal will take over as the new executive chairman of Flipkart. Krish Iyer, the present and CEO of Walmart India will lead that part of the business.
The final make-up of the board is still a pending decision, but it will include independent members.