Walmart’s decision by acquiring Flipkart is one of the costliest acquisition tagged with $16 billion.
Many think this acquisition is a smart strategic move from Walmart to enter into the huge market of India’s e-commerce.
According to emarketer.com retail sales in India will climb 31.0% this year to reach $32.70 billion.So it is a calculated masterstroke.
With this acquisition, Walmart takes a 77 percent share to be the lead key player to operate Flipkart.
Walmart announced Flipkart will still be operated by Tencent and Tiger Global retaining board seats along with Flipkart co-founder Binny Bansal and Microsoft.
Walmart promises that they will work closely for the benefit of small businesses, job creation, supporting farmers and development activities for the supply chain development.
Walmart also cleared that this acquisition of Flipkart will be used as the “key center of learning” for them.
They are very much excited to know what key ingredients drive the success of Flipkart.
Walmart COO Judith McKenna previously announced that this strategic takeover is a very good opportunity for them to learn from Flipkart and reapply that principles for the global market success.