Walmart buys Flipkart in 16 billion dollars, a valuation of over 20 billion dollars which makes this deal world’s largest e-commerce deal. Walmart will own around 77% of the Flipkart in what is also being seen as the largest buyout for the US firm.
The deal which will see founder Sachin Bansal completely exit will now pit US Based giants Walmart and Amazon in the Indian market. The deal is going to shake things up. The world’s biggest retail deal will impact the whole segment, the competitors and the consumers. Here’s how it pans out.
Online sellers on Flipkart are very jittery because Walmart can wipe them off. Walmart a 500 billion American behemoth has a reputation for killing small businesses with ultra-low prices. They fear that Walmart might bring in its own private labels via Flipkart to the Indian consumers.
These products would be brought in at hyper-competitive prices, which will cannibalize the market and make it difficult for other sellers to operate. We are studying the situation and will take appropriate action, including the legal route, if necessary,” a spokesperson of the All India Online Vendors’ Association (AIOVA), which has 3,500 sellers on large platforms like Flipkart and Amazon as per a report.