U.S retail giant Walmart is set to buy a major stake in Flipkart ,one of the India’s largest online company . Walmart CEO said that India would become a key center of learning for the global operation of the firm.Doug McMillion , president and CEO ,Walmart ,said “We are learning how to build and how to partner to build retail ecosystem around the world .India will now become the key center of learning for our company.”
The deal took place ion Wednesday,Walmart CEO Dough McMillion arrived in Banglore , the Flipkart headquarter ,to announce the deal .Walmart has bought 77% stake in Flipkart for $16 billion ,successfully concluding 20 months of talks.The transaction will result in largest exit for private equity and venture capital investors in India.The cofounder of Flipkart exits while the other cofounder Binnay Bansal , Tencent Holding Limited, Tiger Global Management LLC and Microsoft Corporation remains invested.
There will be large investment in technology both on digital payments front as well as other areas. Walmart will bring their managerial experts.Large chunk of fresh investment is expected to strength back-end infrastructure.Earlier in the days Softbank ,the largest investor in the e-tailer confirmed that the Walmart -Flipkart agreement was made on tuesday night.
Many employees at Fipkart has become millionaires like Sameer Nigam,CEO and founder of Pay Pal,Amod Malviys ,former chief technology officer , Sujeet Kumar ,Vaibform Uddaan,former business finance chief and many more are included in this list of millonare. The Walmart deal will make Sachin richer by about $1.04 billion (Rs 7006 crore) ,while Binny , by virtue of his partial exit ,will take home $104 million(Rs 700crore).