Bengaluru: US-based Walmart recently said that the firm had completed its deal of buying India’s largest e-commerce firm Flipkart for $16-billion.
Regarding this Walmart even released a statement in which the firm mentioned that the business will be managed by the existing management team headed by CEO Kalyan Krishnamurthy. But the company will add new board members from Walmart to the existing board members of Flipkart.
Our sources have reported that earlier, the CCI approved the Flipkart-Walmart deal but the traders across the country protested against the decision due to the fear that the deal will lead several small retailers out of the business.
“Walmart and Flipkart will achieve more together than each of us could accomplish separately to contribute to the economic growth of India, creating a strong local business powered by Walmart. Our investment will benefit India by providing quality, affordable goods to customers while creating new skilled jobs and opportunities for suppliers. As a company, we are transforming globally to make life even easier for customers, and we are delighted to learn from, contribute to and work with Flipkart to grow in India, one of the fastest-growing and most attractive retail markets in the world”, said Judith McKenna, president, and CEO, Walmart International.
The sources even revealed that acquisition of Flipkart is the biggest e-commerce deal that Walmart has made which has put an end to the era of Flipkart. The chairman Sachin Bansal sold his 5.5-6% stake for roughly $1 billion and left the company. While on the other hand the company’s other founder, Binny Bansal will hold the chair as Flipkart group chief executive officer (CEO) and Kalyan Krishnamurthy has retained his position as Flipkart CEO.
The competition which was between the three individual firms Walmart, Flipkart and Amazon will now exist between Walmart-Flipkart and Amazon.