As the deal which could see US retail giant Walmart investing as much as $10 billion for a majority stake in Indian e-commerce major Flipkart nears fruition, all eyes are focused on how Walmart executes its online-to-offline plan in the country. Considered to be a major proponent of the deal, Walmart is looking at Flipkart as a partner not just to combat rival Amazon in the e-commerce space, but also as a way for it to make inroads into India’s underpenetrated offline retail market. Sources privy to information of the deal confirm that Walmart is pushing to acquire 51 per cent stake in Flipkart over a period of time. The deal will provide exits to several of the company’s early investors such as Accel Partners, Tiger Global, Naspers and IDG Ventures. “It’s going to be great for guys like Accel Partners and Tiger Global. This is what they’ve been waiting for as they’ve been investing for years now and must show returns to their LPs.
Source: Business Standard