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With Flipkart 2.0 in Making, India Inc Cheers World’s Largest E-commerce Deal

4 min read

With Softbank confirming Flipkart’s buyout, Indian startup ecosystem correct recorded one in every of the largest exits of the venture capital-backed company.

Whereas some applauded the deal, different stakeholders raised their concerns associated to future of Flipkart's sellers, customer experiences, centralized competition between AmazonWalmart, and most importantly, the impact on smaller e-commerce gamers.

The Noise

On 9th April, soon after Softbank's CEO Masayoshi Son at some stage in an earnings webcast unintentionally confirmed the deal, Walmart issued an announcement on the Flipkart’s buyout whereby the former can pay USD Sixteen billion for an preliminary stake of roughly 77 per cent within the Indian e-commerce company.

Right here’s Walmart's 2d stint to enter the Indian market after it parted methods with its accomplice – Bharti Neighborhood in 2013. The US-massive at this time runs spherical 21 B2B Best Tag money-and-carry shops together with one fulfilment centre in India.

Saying the deal, Doug McMillon, President and Chief Govt Officer, Walmart acknowledged, “India is one in every of the most stunning retail markets on this planet, given its dimension and development rate, and our funding is a risk to accomplice with the corporate that is main the transformation of e-commerce available within the market.”

Walmart furthermore acknowledged it’s actively attempting to search out trace new methods to reduction possibilities together with the difficult flee. Whereas, the Flipkart funding offers a particular different, consistent to the retailer with the technique of searching for innovative methods to grow. “The funding transforms Walmart’s establish of residing in a country with extra than 1.3 billion folks, tough GDP development, a rising center class and fundamental runway for smartphones, web and e-commerce penetration,” the announcement read.

Expert Conception

Adrian Lee, Evaluate Director, Gartner suggests that deal is phase of Walmart’s world growth strategy. “This must easy now now not be noticed with out mention to Alibaba Neighborhood’s intent to change into the third participant in India. With the broad client imperfect, India looms as an stunning marketplace for outlets. It’s at this time estimated that 15 per cent Indian consumers will likely be procuring on-line by pause of 2018, and the rather untapped development capability is attracting the commerce giants.

“Homegrown firms stand to serve within the lengthy term. As consumers are extra attuned and delighted to procuring on-line with e-commerce marketplaces, we perceive vertical experts (largest classes being model, 2d electronics) benefiting. High worth, extra discerning consumers who desire differentiated picks and irregular supplies will look out experts to fulfil this need,” he identified.

Indian Inc Applaud

Amid quite loads of concerns associated to the deal, the Indian Inc and the venture capital community notorious the deal as Vani Kola, Managing Companion, Kalaari Capital noted this deal as milestone now now not correct for the corporate but furthermore for the Indian entrepreneurial ecosystem.

Fellow entrepreneur Kunal Bahl, Founder, Snapdeal congratulated Flipkart's Co-founders Sachin Bansal and Binny Bansal. It modified into once rumoured that Flipkart modified into once alive to to manufacture Snapdeal however the deal didn't perceive the day's gentle.


Whereas, Vijay Shekhar Sharma, Founding father of Paytm, tweeted that the deal speaks in regards to the openness of the Indian market.


Ace investor Ronnie Screwvala, referring to his exit at the UTV Neighborhood, empathised with Sachin and tweeted an emotional message for the entrepreneur.


On the different facet, Ananth Narayanan CEO of Jabong and Myntra (Obtained by Flipkart) expressed his excitement to be phase of Flipkart 2.0.