This tie-up between Flipkart and WalMart might give the Indian company cash empowerment to fight against Jeff Bezos owned Amazon.
Now a huge or monstrous creature Walmart Inc is ready to invest in the Indian Companies such as Flipkart. We very well known about Walmart It is one the biggest economy and admires company around the world and if they have been planning to invest in the Indian company then it is one of the best news for all Indian Start-up companies. As per one of concern person we got the information that Walmart is willing to invest around $1 billion on Indian one of the success, E-Commerce start-up Flipkart.
According to Bloomberg, Walmart is ready to invest on Flipkart on the contract to take a minor stake value of the company, By-the-way final term of a deal have not been confirmed and negotiation, meeting are still underway. As per CB Insights Flipkart has current valuation was $16 billion but declined to comment.
This deal is beneficial for both Walmart as well as Flipkart. As we know, Funding has been becoming more difficult to obtain in the country, So if this deal will happen then it will give some backbone and wealthy power to take a stand with world most admire E-Commerce Amazon, that (Amazon) planning to invest another $3 billion in India to gain their customer in fast-growing Indian market and world largest open E-Commerce market.
We are enough capital for technology, Supply chain, but for going to next level of growth we all need a well and long term capital to run the show. One thing we all know, that Flipkart has been one of the top five companies globally that recognized to rise their private capital.So that much amount of capital is very important and meaningful. But Flipkart co-founder and chief executive officer Binny Bansal said that our main focus is on growing the business,innovating for a customer not to raise funding.
Flipkart is largest and most success online retail in India, but their leads have been under assault or went down as Amazon took steps up to investment in Country.A recent Bank of America Merrill Lynch Report pegged that Flipkart as the leader with 43 percent of market share.It forecast that by 2019, It might increase their share to 44 percent.As per news, Last week Flipkart crossed the 100-Million registered users mark. That make the first Indian company that hit that milestone, They have doubled it’s user base over the last year and approx 25 million users in the past six months alone.
Kotak Institutional Equities has recently estimated that the online retail business will average 45% annual growth rates in the next 4 years and might touch $28 billion by 2020.
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