Walmart, the largest retailer in the world, has completed acquiring a majority stake in Flipkart, which is the largest e-commerce marketplace in India. The two companies issued a joint statement to announce that Walmart has acquired a majority stake in Flipkart for a total sum of $16 billion. The companies also announced that Mr. Kalyan Krishnamurthy, the current chief executive officer of Flipkart, will continue to retain his current position.
Walmart announced that Tiger Global Management and Tencent Holdings Ltd. will continue to be represented on the board of Flipkart. Also, in addition to the independent board members who are currently on Flipkart’s board, Walmart will also be appointing a few new members to Flipkart’s board from its own team.
Earlier this year, Walmart announced that it will be acquiring a 77% stake in Flipkart for a sum of $16 billion, thus valuing Flipkart at $21 billion. The buyout has been Walmart’s largest acquisition till date and also the largest e-commerce deal in the world. Further, with this buyout, Mr. Sachin Bansal, the co-founder and chairman of Flipkart, has exited the firm by selling his stake in the company for a sum of $1 billion. Mr. Binny Bansal, the other co-founder of Flipkart, will continue to lead the company as its group chief executive officer.
Sources: Livemint, Business Standard, ET Tech