Published By : 20 Feb 2018 | Published By : QYRESEARCH
Of late, Walmart has been in talks with Flipkart regarding investments and purchasing stakes in the Indian retailer. As of now, the global giant is in negation with Flipkart over opening a chain of retail stores in India, which could finally permit the firms to materialize their long-harbored desires, told a source close to the company. The US-based retail giant wants to procure a stake of more than 30% in the largest online marketplace of India, i.e., Flipkart, as it is looking to open another front in its combat against Amazon. However, Walmart is likely to procure only a 20% stake, owing to of objections from SoftBank, the newest investor of Flipkart, which holds a stake of 20.8% in the Indian retailer.
A source close to the company told that Flipkart has been trying to venture into offline stores for a long time and has been in search of the right partner. Since Walmart cannot open retail stores directly in India, thanks to the restrictions imposed on overseas investments in multi-brand retail, it is compelled to run wholesale operations instead. Flipkart, on the other hand, needs more than just capital investments to take on the heavily supported Amazon in India.
According to a report published this week, Flipkart is looking to purchase Vishal Mega Mart from Shriram Group and TPG. Industry experts are suggesting that a partnership between Walmart and Flipkart will boost the grocery and consumer goods business of the former and the online retail business of the latter. Through its B2B arm with twenty-one best price modern wholesale stores, Walmart already has a strong presence in India.