Multinational retail giant Wal-Mart Inc. has come very close to buying the domestic e-commerce company Flipkart. According to sources, Wal-Mart has put the market value of Flipkart at more than $ 2 billion (over Rs 1.3 lakh crore). At this price, Wal-Mart is ready to offer up to $ 1,200 million (over Rs 78,000 crore) to buy a total 60 percent stake in Flipkart.
Although the global e-commerce giant Amazon, which has been battling Wal-Mart in the deal, has not yet left the expectations and is in full swing to make the deal in its favor. Sources also say that most of the investors of the domestic e-commerce company are willing to sell their stake in Wal-Mart at this price. These include names of big investors like Japan Softbank, Tiger Global Management, Excel and Naspers.
However, Flipkart or Walmart did not answer any questions about this. At the same time, Softbank said that he does not comment on the projections. But sources said that Flipkart's deal with Wal-Mart could be soon.
According to sources, Amazon had put Flipkart at $ 22,000 million, which is more than the price of Wal-Mart. Apart from this, he was also ready to pay a brake-up fee of $ 200 million (Rs 13,000 crore) to Flipkart.
But according to one source, while accepting from the Competition Commission of India (CCI), the Flipkart-Amazon deal could have been difficult because both of them are the top companies in the e-commerce segment in India. Apart from this, during the Due Delegation process in the deal with Amazon, Flipkart had to share sensitive business data with Amazon, which could prove to be fatal for Flipkart's business when a deal broke down.
Regarding possible deals, Chief Analyst and CEO of Greyhound Research, Conservative Veer Gogia said that going with Wal-Mart, Flipkart would be very helpful in competing with the competing Amazon in the domestic market.
It is worth mentioning that last year Softbank Vision Fund had invested $ 2,500 million for a 20 percent stake in Flipkart.
At the same time, Amazon's Chief Financial Officer (CFO) Brian Olsavsky told investors that India is a very important market for the company. In this market, the company will invest up to $ 500 million (Rs 32,500 crore) to strengthen its operations.