Walmart buys Flipkart in world's largest e-commerce deal

[Stradlater]

US based retail giant Walmart has closed the largest e-commerce deal in the world by acquiring a majority stake in the Indian e-commerce platform Flipkart, SoftBank CEO Masayoshi Son has confirmed.

According to reports, Walmart will acquire 71% stake in Flipkart for $15 billion, valuing the homegrown startup at around $20 billion.

[Singh bling]

The new business model of world , just create brand of yours by giving huge discounts and then sell business to some big MNC

[Garuda]

and then there wont be any new business to create. what happens then.

[velu]

both bansals are going home with 1 billion dollars

[Garuda]

47 minutes ago, BeardedAladdin said:

An indian company can't even get a foothold in the Indian market. How sad. 

 

E commerce isn't a big percentage of total retail in India, so it isn't as bad as it looks. but the death of indigenous business is never  a good thing. You don't want foreigners controlling all the business done in your country. 

 

many indians don't mind being slaves though. 

Most people fall in for cheap prices at the start. Then the price climbs as the competitors go down. Its a failure on both parties of commerce - seller and buyer

[jusarrived]

17 hours ago, velu said:

both bansals are going home with 1 billion dollars

So will the govt , heard they will be paying capital gains tax 

[jusarrived]

18 hours ago, BeardedAladdin said:

An indian company can't even get a foothold in the Indian market. How sad. 

 

E commerce isn't a big percentage of total retail in India, so it isn't as bad as it looks. but the death of indigenous business is never  a good thing. You don't want foreigners controlling all the business done in your country. 

 

many indians don't mind being slaves though. 

I agree with rest of the post , but can you explain the bolded part ..how do you infer that from this deal ? 

[jusarrived]

On 5/9/2018 at 3:22 PM, Singh bling said:

The new business model of world , just create brand of yours by giving huge discounts and then sell business to some big MNC

Thats actually old , these days you dont get valuations unless you are profitable almost from day one ..thats why you see a lot of startups winding up .

[jusarrived]

Nasper seems to have these knack of identifying good business and cashing out at the right time , they invested ~$600m in Flipkart five years back and take home cool ~$2.2 billion . 

 

 

[velu]

28 minutes ago, jusarrived said:

So will the govt , heard they will be paying capital gains tax 

if they encash the shares , they have to pay 10% LTCG ..

one of the bansal is reataining his 5.5% shares

[Singh bling]

3 hours ago, jusarrived said:

Thats actually old , these days you dont get valuations unless you are profitable almost from day one ..thats why you see a lot of startups winding up .

Flipkart is huge loss making

[jusarrived]

7 minutes ago, Singh bling said:

Flipkart is huge loss making

FlipKart is not a startup anymore , its more than a decade old company in a capital intensive retail sector like Jio , Airtel in Telcom or a Indigo/Jet in Airlines . 

Edited May 10, 2018 by jusarrived

[kira]

Flipkart was always a poor man's amazon, these bansals stole the idea from amazon, pity that most Indian startups are copies of western ideas.

[Scar]

Walmart will be pumping 2-3 billion dollars more into flipkart I heard. Will be major competition to amazon in India. 

[Mariyam]

@BeardedAladdin

 

Flipkart isn't an Indian company. For a variety of reasons, mainly to do with avoidance of double taxation and a lower corporate tax rate, Flipkart is registered in Singapore.

[Straight Drive]

Needs to be seen whether the new management can turn this into a profitable business.