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Naspers sells Flipkart stake to Walmart for $2.2bn

11 May, 2018, 04:46 | Author: Kristi Dunn
  • Flipkart Chart1

Tiger Global New York-based investment firm Tiger Global Management, Flipkart's biggest backer since 2010, has raked in $3.3 billion from its total investment of $1 billion in India's largest online retailer that Walmart has bought.

Flipkart sealed the world's largest e-commerce deal yesterday with Walmart, cementing India's place in the global e-tailing league.

"Flipkart's scale of business will grow immensely post the deal with Walmart as the USA retailer has deep pockets and better experience in handling global market", said Nrusingha Charan Barik, who is in charge of the delivery partner of Flipkart in Odisha.

Since then, Climan and Moore have worked closely on a number of large deals, including advising Marvell Technology Group Ltd. on its pending $6 billion buy of Cavium Inc. and Synopsys Inc. on its $565 million acquisition of Black Duck Software Inc.

However, a deal done on paper is still subject to regulatory approvals. The venture capital ecosystem has received a boost and the investors' successful exit is expected to power the VC business in India for a long time. Amazon holds about 27% of India's burgeoning e-commerce market, according to Euromonitor, where Walmart only operates 21 cash-and-carry wholesale stores in the country that sell to businesses.

Walmart expects the deal to help set it up "for growth and profits in the future", CEO Doug McMillon said during a call with investors.

Takeda and Shire agree £46bn takeover
After waging a lengthy campaign to win over the board of Dublin-based Shire, Takeda announced Tuesday that they had an agreement. Shire has offered Takeda a large presence in the USA and an expertise in the rare diseses.

Flipkart is leading in the fashion segment through the acquisition of Myntra, Jabong and eBay (Indian wing), the online fashion portals. In competition with Walmart, Amazon made an offer to buy 60% of Flipkart's share to get the majority of ownership as compared to Walmart. "Over the last 11 years, Flipkart has grown to be one of the most recognised brands, and the No 1 ecommerce platform in India".

Mumbai: The government today said there is a great deal of interest for disinvestment of Air India, amid the deadline for submission of preliminary bids ending this month. "Most of these small entrepreneurs are already battling for their existence; entry of Walmart will further create problems for them", the SJM's co-convenor said in his letter. "We have met before and I am sure will meet again".

With its investment in Flipkart, Walmart will be able to penetrate the Indian online retail market, in a country where it would've struggled to open its own e-commerce business, given that India doesn't permit foreign investment in online retailing, says Mihir Sharma.

Accel: Accel is keeping some of its shares in Flipkart, but the firm will notch one of its biggest exits after almost a decade of sitting tight.

In this case, apart from domestic income tax laws, articles from a number of income tax treaties signed by India with the US, Singapore, Mauritius, South Africa, and a comprehensive agreement with China will also be invoked.

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