Press Release : Flipkart’s Strategic Partnership: Here’s Everything you Need to Know
Press Release :
May 14, 2018,Bentonville, Arkansas, Bengaluru, India: Retail giant, Walmart acquires ecommerce marketplace Flipkart and marks its position by making an entry in India.
Flipkart has been a known and a renowned name in the field of e-commerce and one of the biggest competitors to the tech giant Amazon. With rumors of Flipkart to acquire Snapdeal being dabbed, it is now Flipkart which has been acquired by Walmart and will pay $16 billion for an initial stake of approximately 77 percent in Flipkart, formely known as Flipkart Private Limited. The remainder of the business will be held by some of the Flipkart’s existing share holders, including Flipkart co-founder Binny Bansal, Tencent Holdings Limited, Tiger Global Management LLC and Microsoft Corp”, Walmart mentioned in a press release. This Walmart and Flipkart latest news of a merge comes across as a well-thought of one with strategic planning and considered as biggest e-commerce deals in the history of India.
In recent times, Flipkart had seen a decline in its sale and was trying its best to combat by launching various methods such as the local grocery app in Bengaluru to expand its offline ventures. It even went a notch higher by announcing its product accessibility in over 200 countries and entered international business stream. Flipkart’s deal sealed with Walmart will now provide Flipkart a financial backup and access to a globally recognized trademark of trust and brand power. Amazon, will now have to take on Flipkart that has money and access to various other marketing platforms that are acquired similarly by Walmart.
“India is one of the most attractive retail markets in the world, given its size and growth rate, and our investment is an opportunity to partner with the company that is leading transformation of e-Commerce in the market”, said Doug McMillon, Walmart’s president and chief executive officer. Walmart also has been benefited with this deal as Walmart over the years had launched itself as the invincible retail giant and carried a brand power that was recognized worldwide.
But, with increased e-commerce coming into play, especially the likes of Amazon which also holds a firm place in the very same regional space as Walmart, Walmart had seen its downfall if no change would be brought about. It partnered with Rakuten, a Japanese e-commerce and has been trying to make an impact. Now, with its new venture with Flipkart, Walmart which has been only heard of by the Indians will have an influence in the consumer products.
“This investment is of immense importance for India and will help fuel our ambition to deepen our connection with buyers and sellers and to create the next wave of retail in India,” said Binny Bansal, Flipkart’s co-founder and group chief executive officer.
Walmart is playing cleverly by being a retail giant and partnering up with online e-commerce companies, thus establishing itself in both offline and online domains. Flipkart offers will now be diverse and global for sure.
As a customer, from the consumer point of view, the new trends in the online e-commerce field is surely going to bring in a new wave of change. Where tide goes is yet to be seen as Amazon will have some new ideas to implement.
About Walmart : Founded in 2000, Walmart has grown to become a worldwide famous brand with largest retailer. With more than 1,000,000 products online availability Combination of best technology and world class retailing service it gives their customer to give a wide assortment of their favorite products.
About Flipkart : Launched in 2007, Flipkart is India’s leading marketplace with over 80 million products across 80+ categories serving over 100 million customers all over India. Withing it’s 10 years of span, Flipkart has successfully established itself giving pioneer services like cash on delivery, no cost emi, easy return policy on the top of that In-a-day-delivery and same-day-delivery options making it more convenient and affordable for their registered customers.
But, we are sure of some deals that are definitely interesting, be sure to use our Flipkart coupons and bank on the best!
Sources : Walmart Newsroom