Flipkart goes, it's Walmart Vs Amazon!
Walmart Inc. today said that it will acquire Flipkart for $16 billion. The valuation of the Indian e-commerce giant is over $20 billion.
Is it a great deal? Yes. "In December 2016, Morgan Stanley had valued Flipkart at $5.6 billion, which was one-third ($15.2 bn) of its value in July 2015," says journalist Sameer Hashmi. He adds, "India now becomes the new battleground for Walmart Vs Amazon. The former has struggled to compete against the latter in the e-commerce space. Even on its strong turf - the United States, Amazon is giving Walmart a tough competition by opening retail stores."
What is in it for Flipkart's founder? Says Madhavan Narayanan, "The big takeaway: Sachin Bansal (Flipkart's co-founder) becomes India's youngest self-made US dollar billionaire, will soon be on Forbes super-rich list."