Walmart Inc., the world's largest retailer, is in final negotiations to buy a majority stake in Flipkart Ltd even as a rival combination of Flipkart and Amazon looks increasingly unlikely, three people familiar with the matter said.
As reports of Flipkart's imminent acquisition by Walmart and also Amazon gather steam, global mutual funds are joining the ranks in their assessment and valuation of India's e-commerce poster boy. Reports already state that US-based retail giant Walmart is looking to buy a significant stake in the Indian e-commerce company.
USA online retail giant Amazon has made a formal offer to buy a 60 per cent stake in India's leading e-commerce marketplace Flipkart, according to a report by CNBC TV18 which cited sources.
According to Quartz, which cited data from 7Park Data, as of April, Amazon's market share in India stood at 44%, down from 50% at the start of the year, but still ahead of Flipkart, which controls about 40% of the market, Quartz reported. Flipkart is registered as a public company in Singapore, and needs to reduce the number of its shareholders to below 50 to be recognised as a private limited company in the Southeast Asian country, said the report.
Flipkart didn't respond to an email seeking comment.
Walmart has agreed to invest around $12 billion to pick up around 60 per cent stake in Flipkart, in a mix of primary and secondary deals.