Published By : 09 Feb 2018 | Published By : QYRESEARCH
While Walmart Inc. is the World’s biggest retailer, Amazon has established itself as the most prominent company across all sectors in the recent past. Over in India, Amazon is doing great too as ecommerce continues to penetrate deeper into the vastly populated emerging economy. But, their only competition is coming from Flipkart, a domestic company that has been aggressive to counter the challenge from Amazon, particularly since its merger with Ebay and acquisition of Snapdeal.com.
Now, Walmart is rumored to be in talks to buy as much as 20 percent stake in Flipkart Online Services Pvt. Ltd., which if happens would push the startup’s valuation beyond US$20.0 billion, up from its currently worth of nearly US$12.0 billion. These talks have now gained momentum since it started in 2016. In the meantime, Japan’s SoftBank Group Corp. has already poured in US$2.5 billion in the ecommerce startup. Walmart has not make a foothold in India after several years of contemplations but now their talks with Flipkart are in advanced stage, according to a person familiar with the matter.
It must be noted that India’s ecommerce industry has increased leaps and bounds in the recent past and even Amazon’s founder Jeff Bezos acknowledges the potential of the country, promising to spend US$5.0 billion to stay ahead of the competition. Online wallet firm Paytm E-commerce Pvt. Ltd. is another player in the fray, gaining backing from China’s Alibaba Group Holding Ltd.
In terms of volume of demand, India comes at third position behind the U.S. and China