Why Walmart buys 77% stake in Flipkart?


World’s largest retailer Walmart officially bought Flipkart’s 77 percent stake for $ 16 billion. It is being called the world’s largest e-commerce deal. There are no two opinions in it that this is the largest acquisition in India.

There are many different types of fears about this deal everywhere. There is such uncertainty in the market that Wal-Mart has lost its value of 4 percent. It is approximately $ 10 billion in market value. Shareholders in the US are complaining that Wal-Mart has paid a big price for the smallest thing. Such a big deal can not be ignored. This can change everything in India’s digital and internet industry.

On 9th May this deal was officially announced. It is believed that the Indian e-commerce sector will be known in two definitions. One before May 9 and after 9 May.

early to this deal, the entire media and business analyst believed that the only way to succeed in any company in India is the IPO. Secondary cells were generally considered like an occasion or gambling. But after this deal of Flipkart and Walmart, the situation is going to change completely. It will encourage digital entrepreneurs to bring something new in the coming time. If the idea is good, then any entrepreneur can get the same exit. However, this deal does not mean that every other Idea or every other new company will get such an opportunity but this has given potential to prospects. Now those things are possible which was not before.

The Indian startup ecosystem has got a new hope after this. There will be stiff competition between Walmart and Amazon in the e-commerce sector. This will see a stir in the e-commerce area. With Alibaba’s support, Paytm could play the role of a wild card in this competition. Apart from this, Google also has a 7 percent stake in the new Flipkart. When big players come on the market with great cost, then everyone gets the benefit.

How will the Indian Consumers benefit from this deal? Indian users who have increased the prevalence of buying online products can benefit from this deal. Walmart is famous for the sales model every day. Walmart offers large discounts to consumers daily. Now apart from Google, Flipkart is also in his pocket. Now the company can come out with discounts which have not been seen in the e-commerce sector before. If you think that Paytm and Alibaba are doing masters in the case of discounts, then Wal-Mart can make their products expensive at your fingertips.

Completing these three factors together, this Flipkart and Walmart deal could prove to be a game changer for the whole industry.


Please enter your comment!
Please enter your name here