10 Key Takeaways from the Flipkart-Walmart Deal

Walmart finally closed the deal with Flipkart for USD 16 billion, after weeks of rumours and speculations, as it plans to take on rival Amazon in one of the fastest growing markets. The acquisition is Walmart’s biggest foreign investment ever and also one of the most successful exits by an Indian startup. The acquisition was first announced by investor Softbank’s CEO and founder Masayoshi Son followed by an official statement from Walmart. Here are the ten things you need to know all about Flipkart-Walmart deal:

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1) Bengaluru based Flipkart was founded in 2007 by Sachin Bansal and Binny Bansal (no relation). It was the first major e-commerce company in India and owns well-known platforms such as Myntra, Jabong and PhonePe. It has around 30,000 employees, 54 million active customers and an annual turnover of $2.3 billion.

2) Walmart will pay $16 billion for roughly 77% stake in Indian online platform. The deal will also include $2 billion of funding from new equity in Flipkart. The two companies are in discussions to bring in additional potential investors, diluting the US company’s overall stake. However, Walmart will maintain a clear majority ownership in the company.

3) The remainder of the business will be held by some existing Flipkart shareholders including co-founder Binny Bansal, China’s Tencent Holdings Ltd, Tiger Global Management LLC and Microsoft Corp.

4) Tencent and Tiger Global will remain part of the Flipkart board, while Walmart is expected to get three board seats at Flipkart. It will also have a say in the appointments of the group’s finance, legal and compliance heads. The final makeup of the board might also include independent members.