© Copyright 2015 © LawOrdo.com || Call : +91 9625063335. 2. How to organize a Marathon with legal compliance? ● Flipkart’s losses in FY 2017 had increased by 68% to Rs 8,771 crore, according to documents sourced from data intelligence platform Paper.VC. Since, China has very closed economic practices, India is the best option at this point of juncture to invest as the potential of online retailing is the biggest and most unexplored per se. ACQUIRER – Walmart Inc. EVENTS ● According to Google India Research, by 2021 India is expected to generate $100 billion online retail revenue out of which $35 billion will be through fashion e-commerce. Walmart and Flipkart … It has 100 million registered users, 100,000 sellers, 21 warehouses, 10 million daily page visits in 2018. Reasons why Walmart decided to invest in Flipkart! But very few have genuinely listed points which might have led to this mega Acquisition which left the whole world startled and set out a blazing fire of “change” in its truest sense. Online apparel sales are set to grow four times in coming years. Post this, Walmart has been rapidly investing in various e-commerce websites/forums like Jet.com, Moosejaw, Bonobos, etc. Why Canada is a great country to Immigrate? The year 2018 has been an unbelievable year in terms of India and its placing before the World as the biggest potential for growth in almost all of its sectors. ● Upon going through the following table, you will be able to see the different slabs of FDI allowed : ● It is clear from the above referred table that the Investment Allowance in ‘E-Commerce’ is 100%, which Walmart has taken advantage of. ■ Flipkart’s existing management team will continue to lead the business. Walmart Inc. sold $16 billion of bonds to help finance its investment in India’s biggest online seller, in the second-largest U.S. corporate debt sale of the year. It was rejected by the company, which was seeking at least US$1 billion. ■On January 15, 2016, Walmart announced it would close 269 stores in 2016, affecting 16,000 workers. In July 2017, Flipkart made an offer to acquire its main domestic competitor, Snapdeal, for around US$700–800 million. Both companies will retain their unique brands and operating structures in India. BENTONVILLE, Ark., BENGALURU, India, Aug. 18, 2018 – Walmart Inc. (NYSE: WMT) and Flipkart Group ("Flipkart") today announced the closing of the agreements for Walmart to become the largest shareholder in the Flipkart Group. CTRL + SPACE for auto-complete. Lately, India climbed 23 points in the World Bank’s ease of doing business index to 77th place, becoming the top-ranked country in South Asia for the first time and third among the BRICS. ■ Flipkart’s current administration team will continue to lead the business. ■ Flipkart Group’s consolidated loss attributable to owners of the company in fiscal 2017 widened to Rs 8,770 crore, from Rs 5,216 crore a year earlier. The same has been followed in the Flipkart – Walmart Deal. On the other hand, Parthasarathy says, app-based consumer lending is a vastly underserved market, with financial services and fintech companies struggling to comprehend the needs of consumers here. Both the founders share the same alma mater – IIT, Delhi and were former employees of Amazon. “It didn’t have any shortage of funds and Softbank and others were really invested. Answered April 24, 2018. DEAL SNAPSHOT "India is one of the most attractive retail markets in the world, given its size and growth rate," Walmart's president and CEO Doug McMillon said in … Amazon - 3 billion Dollar. People in the USA feel that Walmart has paid extravagantly for acquiring Flipkart because the Indian company is not expected to make massive profits in the coming years. ● Flipkart has 100 million registered users, making it the first online marketplace in India to reach this milestone. Walmart have acquired a stake of around 77% in Flipkart. Both companies will retain their unique brands and operating structures in India. The investment will help accelerate Flipkart's customer-focused mission to transform commerce in India through technology and underscores Walmart's commitment to sustained job creation and investment in India, one of the largest and fastest-growing … ● While in India, Flipkart was in business, 2 years ago one of the main questions was whether Flipkart was going to sustain in the Indian E-Commerce Markets. Especially since Flipkart was nothing but losses and a few years ago, the survival of Flipkart as an entity was also a question. Fancy yourself a bit of the entrepreneurship? © Copyright 2016, All Rights Reserved. Why did Walmart spend so much on Flipkart? The story here is on why this deal is happening and why it makes great sense for both Walmart and Flipkart, beyond the fact that the names rhyme! ● One of the major questions which popped up in almost everyone’s minds upon listening to the news was – WHY FLIPKART IN INDIA? The Walmart and Amazon Rivalry has a long history going back … ■ Walmart wraps up Flipkart and acquires Flipkart for $16 Billion, valued at over $20 Billion. The world’s largest retailer, Walmart, has acquired Indian e-commerce giant, Flipkart for $16 billion and a 77% stake, reports confirmed on Wednesday. It generally is a four step procedure before any business entity takes any major step to restructure its setup – Ideation; Finding a Prospect; Weighing the Pros and Cons; and finally, execution & closure of the deal. Walmart, the largest e-commerce giant acquired a controlling stake of 77% in Flipkart ( India’s largest e-commerce company by market share) by investing $16 Billion. ● It is not news, that after the prevailing political status of India and the enterprises taken by India towards ease of business, digitization of the country, etc has increased the potential of India manifolds. Flipkart’s valuation fell from $15.2 billion in 2015 to $11.6 billion in April 2017, when it raised capital in a round led by Chinese internet conglomerate Tencent. Students of Lawsikho courses regularly produce writing assignments and work on practical exercises as a part of their coursework and develop themselves in real-life practical skills. This Article focuses on Walmart’s purchase over Flipkart and the reasons why they have invested in Flipkart. Privately held companies are always valued higher than listed entities, but the answer, probably, is the premium the US retail giant is willing to pay to make inroads in India and in the words of its CEO Doug McMillon, taking action to position the company for the future. The board will work to sustain Flipkart’s core values and entrepreneurial spirit while ensuring it has strategic and competitive advantages. ● Looking at the past stints of Walmart, in order to enter the Indian Markets, Walmart entered in Joint Venture with Bharti Enterprises, but in vain. ● For instance, if Walmart wishes to sell a Goat in the Indian Online Markets, they would have better access to prospective buyers and thus, greater chances of a sale. SoftBank expected to sell its whole stake in the Walmart deal, Reuters reported last week. Let us have a look at the reasons why Walmart has invested in Flipkart : ● The world of Business is encircled by cut-throat competition full of rivalries and competition. Flipkart’s valuation fell from $15.2 billion in 2015 to $11.6 billion in April 2017, when it raised capital in a round led by Chinese internet conglomerate Tencent. Walmart's interest in investing in Flipkart was first reported in 2016, and the deal boosts its firepower in a battle with Amazon (AMZN) in a country of 1.3 … Flipkart and its majority owner Walmart are existing backers of the Bengaluru-based startup, having invested an undisclosed amount in December last year. Walmart has acquired a stake of around 77% in Flipkart. Walmart’s investment includes $2 billion of new equity funding, which will help Flipkart accelerate growth in the future. Career opportunities for you stretch beyond research to editorial, sales, content management, digital marketing. How To Improve Hiring Process By Simple Background Checks? Written by Pragya Chandra pursuing Diploma in M&A, Institutional Finance and Investment Laws (PE and VC transactions) offered by  Lawsikho as part of her coursework. ● For people who had been closely monitoring Walmart and its activities, it was not at all a surprise that Walmart would take this huge leap from brick and mortar stores to coming into the business of e-commerce. There have been quite a many thoughts by various analysts, marketing gurus and research honchos, as to what factors and indicators might have led to this scale of the transaction, resulting to bringing India at an eminent place on the International Forums. ■ Flipkart was founded in 2007 in Bengaluru, Karnataka by Sachin Bansal and Binny Bansal. Pragya is a Legal Advisor with Portfolio Financial Services Ltd. Indian Market. The Walmart and Amazon Rivalry has a long history going back to the very beginning of Amazon, Inc. The year 2018 has been an incredible year in terms of India and its placing before the World as the biggest potential for growth in almost all of its sectors. India has the distinction of having the second largest user base in the world, after China offcourse. Wal-Mart Stores Inc. is in discussions with Flipkart Ltd., India’s largest e-commerce company by sales, about investing in the startup, according to a person familiar with the situation. It has beaten Amazon, Snapdeal, PayTM and all other e-commerce prospects single-handedly when it comes to approaching of clients and in terms of connecting to the masses. ■ Walmart wraps up Flipkart and acquires Flipkart for $16 Billion, valued at over $20 Billion. Net Income: Walmart - 20 billion Dollar. Consolidated revenue jumped 29% to Rs 19,855 crore in fiscal 2017. Especially since, Flipkart was nothing but losses and few years ago, the survival of Flipkart as an entity was also a question. ■ In 2011, Flipkart domiciled to Singapore, as it looked to charm foreign investors to fund rapid growth. ● For people who had been strictly monitoring Walmart and its activities, it was not at all a surprise that Walmart would take this huge leap from brick and mortar stores to coming into the business of e-commerce. ● “Walmart needed Flipkart possibly more than Flipkart needed Walmart,” said Yugal Joshi, practice director at management advising and research firm Everest Group. You have entered an incorrect email address! India has now made it to this list. Right investment at the right time: Why Walmart agreed to spend $16 bn for Flipkart 10 May, 2018, 03:31PM IST. Amidst all of this, the world’s biggest e-commerce deal occured in India when Walmart acquired Flipkart for $16 billion, a valuation of over $20 billion. Both the inceptors share the same alma mater – IIT, Delhi and were former employees of Amazon. Moreover, the Flipkart-Walmart Acquisition has helped India establish its own place before the world as a secure and flexible option to business ventures and inter-country trading with vast scope of potential and immense growth. Recently, India climbed 23 points in the World Bank’s ease of doing business index to 77th place, becoming the top ranked country in South Asia for the first time and third among the BRICS. After their first investment in December 2019, Walmart and Flipkart have once again invested in grocery startup Ninjacart. ● The FDI Laws in India does not allow foreign companies to open front-end stores in India; which was the greatest roadblock for Walmart to sweep in the Indian Markets. As it turned out, the rise of heavily-financed competitors such as SoftBank-backed Snapdeal, Alibaba-backed Paytm and Amazon put paid to any such hopes of a quick road to profitability for Flipkart. Write CSS OR LESS and hit save. PARTIES INVOLVED The fresh equity round led … How are Plaintiffs in Long Term Disability Settlements Offered Benefits? This was originally on account of a five-fold increase in finance costs to Rs 4,308 crore, driven by a fall in estimate. 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Ninety-five percent of these U.S. stores were located, on average, 10 miles from another Walmart store. Walmart and Flipkart are also in discussions with additional potential investors who may join the round, which could result in Walmart’s investment stake moving lower after the transaction is complete. ● Under such circumstances, why was Flipkart being sold as hot cakes and that too at such ground breaking finances? ● India is now being looked at as a country with huge prospects and would yield great returns on investments. Walmart is also running its stores as Best Price but it was not enough. ■ Japan’s SoftBank Group Corp. has a fifth of Flipkart through its Vision Fund. A press statement from the company said Flipkart has become the first company to reach this milestone in a single country outside the US and China. 6 Reasons Why did Walmart Buy Flipkart? Various political and financial circumstances led to the failure and severance of all the ties between Walmart and Bharti Enterprises which also led to the downfall of the public image of Walmart. Ltd. Today, Walmart’s stake in Flipkart stands at 82.3%. With approximately 475 million users, as of July 2018, which conspires of only 40% of its population; India has emerged as one of the largest upcoming online retail growth markets. Tips to Find a Family Lawyer Who Will Fight for Your Case. Very few people in India know Walmart in its entirety and that they have been showing their interests in the Indian Markets since the past 10 years now. ● After China, India is the second most populated country in the world. Since China has very close financial practices, India is the best option at this point of juncture to invest as the potential of online retailing is the largest and most unexplored per se. Other investors in the company include Microsoft - Get Report, Tencent and investment firms Tiger Management and Accel Partners. Tencent Holdings Limited and Tiger Global Management LLC will remain expressed on the Flipkart board, in addition to independent board members, and will be joined by new members from Walmart. Walmart owns around 77% of the Bengaluru-based company in what is also the largest buyout for the US firm. Tencent Holdings Limited and Tiger Global Management LLC will remain represented on the Flipkart board, in addition to independent board members, and will be joined by new members from Walmart. ■ In April 2017, eBay announced that it would sell its Indian subsidiary eBay.in to Flipkart and make a US $500 million cash investment in the company. Basically Amazon is the real competition for Walmart among European countries & US. This has lead to substantial investments in supporting infrastructure and innovative and game changing business models. 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