Flipkart's sales have confirmed to Wal-Mart that Softbank strikes $ 4 billion to sell a stake

Flipkart's sales have confirmed to Wal-Mart that Softbank strikes $ 4 billion to sell a stake

Walmart will invest $2 billion in fresh capital into Flipkart, and buy the remaining stake from the company’s existing investors, thus valuing it around $18-$20 billion.

                                                               

SoftBank Group Co. CEO Masayoshi Son on Wednesday said it has reached a deal to sell its 20% stake in Flipkart, confirming Walmart’s majority-stake acquisition in India’s largest e-commerce player.

The deal is the largest acquisition yet for Walmart, and also the biggest such transaction in the e-commerce market.

According to Bloomberg, Softbank had invested $ 2.5 billion in Flipkart through its Vision Fund and the deal would be approximately $ 4 billion.

According to Mint, the world's largest retailer will invest $ 2 billion in fresh flows in Wal-Mart Flipkart and the remaining will be able to buy the company from existing investors, thus evaluating $ 20 billion to $ 18 billion. 

Google parent Alphabet Inc is also expected to pick up some stake in the e-commerce venture.

Co-founder Sachin Bansal is also likely to let go of his entire 5.5% stake in the company for $1 billion, Mint said.

However, a few investors including Tiger Global Management and Tencent Holdings, are expected to retain a small part of their stake in the company.

After Sachin Bansal’s exit, co-founder Binny Bansal is expected to take on the role of Chairman of the Flipkart group, while CEO Kalyan Krishnamurthy will remain in his role.

The deal has prompted Amazon to ramp up investments in India, with the company recently infusing Rs2600 crore in its Indian unit to strengthen its war chest against rival Flipkart.

Amazon India spokesperson told PTI, "With the long-term commitment to making e-commerce habit for Indian customers as India's fastest growing e-commerce player, we need to increase the entire ecosystem, It is necessary to continue investing in the necessary technology and infrastructure. "