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<ul class="summary-list"><li>Walmart-owned <keyword id="6354742" type="COMPANY" weightage="60" keywordseo="Flipkart">Flipkart</keyword> is working towards an IPO as soon as the fourth quarter of this year, Bloomberg reported. </li><li>The Indian e-commerce giant is seeking a valuation that could top $35 billion.</li><li>If achieved, that would mean Walmart more than doubled its 2018 investment in Flipkart.</li></ul>Walmart-owned Indian e-commerce company Flipkart is working towards an initial public offering as soon as the fourth quarter of this year, according to a <a href="https://www.bloomberg.com/news/articles/2021-04-06/walmart-s-flipkart-is-said-to-aim-for-ipo-in-fourth-quarter?sref=LspfQlRv">report from Bloomberg</a>. Flipkart will be aiming for a valuation of at least $35 billion, according to Bloomberg, citing people familiar with the matter.If achieved, that would mean Walmart more than doubled its investment in Flipkart. In 2018, the US retail giant purchased a 77% stake in Flipkart for $16 billion. <a href="https://markets.businessinsider.com/stocks/wmt-stock">Shares of Walmart</a> rose 1.1% after the Bloomberg report Tuesday morning but have since pared back gains. Flipkart will be one of the latest e-commerce-focused IPOs of 2021 as investors bet on the continued dominance of online shopping in a post-pandemic world. South Korean e-commerce giant Coupang Inc. went public in March in the largest IPO of the first quarter, raising $4.6 billion at a $63 billion market capitalization, according to data from Renaissance Capital.The first quarter of 2021 was the busiest quarter for IPOs in the US in over 20 years, with 102 companies going public. But <a href="https://markets.businessinsider.com/news/stocks/ipo-market-newly-public-stocks-underperforming-compass-deliveroo-quarter-2021-4-1030268838">newly public companies have underperformed the market recently</a>, and a number of companies with high-profile IPOs have lowered their own expectations, like <a href="https://www.businessinsider.com/compass-ipo-s1-profit-loss-real-estate-tech-brokerage-2021-3?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingestm=ingest">Compass</a>, which slashed its IPO price range ahead of its debut last week. It's a sign that investors may be questioning whether the IPO market has overheated in the last year. In September, Reuters reported that Flipkart was preparing for an IPO, <a href="https://www.businessinsider.com/walmart-flipkart-preparing-for-overseas-listing-2020-9">aiming for a valuation in the $45-50 billion range.</a> Walmart has set up an internal IPO team for Flipkart and is aiming to go public in the US. <a href="https://markets.businessinsider.com/news/stocks/spac-walmart-flipkart-public-listing-deal-ipo2021-3-1030150523">The e-commerce company explored going public via a SPAC</a> but that is no longer under consideration, the people said.

Walmart's Flipkart is targeting a 4th-quarter IPO that could value it at $35 billion, new report says

<ul class="summary-list"><li><keyword id="6354742" type="COMPANY" weightage="60" keywordseo="Flipkart">Flipkart</keyword> is considering a US IPO and has approached several SPACs about a potential deal, Bloomberg reported. </li><li>The online <keyword id="110851" type="PERSON" weightage="60" keywordseo="retailer">retailer</keyword> may seek a valuation of at least $35 billion in a deal with a black-check firm.</li><li><keyword id="80487" type="COMPANY" weightage="60" keywordseo="walmart">Walmart</keyword> bought a stake in Flipkart in 2018. </li></ul><a href="https://markets.businessinsider.com/stocks/wmt-stock">Walmart's</a> Flipkart is looking into going public in the U.S., with the Indian online retailer considering a <keyword id="42411" type="PERSON" weightage="60" keywordseo="Merger">merger</keyword> with a blank-check company as an option, according to a report Thursday.Flipkart's advisers have approached several special purpose acquisition companies, or SPACs, in aiming for an initial public offering in the US and to quicken the listing process, <a href="https://www.bloomberg.com/news/articles/2021-03-04/india-s-flipkart-said-to-mull-u-s-listing-with-spac-as-option?sref=GUP2BhaG">Bloomberg reported</a>, citing unidentified sources.Flipkart could seek a valuation of at least $35 billion in a blank-check transaction, the report said. Talks are at an early stage and Flipkart could look into other options. A Flipkart representative had no immediate comment, Bloomberg reported.Walmart in 2018 bought a majority stake in Flipkart in a $16 billion deal. Flipkart sells 80 million products on its platforms and is battling <a href="https://markets.businessinsider.com/stocks/amzn-stock">Amazon</a> and other companies for market share in <keyword id="3658" type="COUNTRY" weightage="60" keywordseo="India">India</keyword>.

Walmart's Flipkart considers going public in the US via SPAC, report says

New Delhi, Dec 11 () US retail giant Walmart and Flipkart on Wednesday said they will jointly invest in Bengaluru-based business-to-business (B2B) supply chain company, Ninjacart.
The three partners aim to help ensure better access to high-quality fresh produce for retailers and consumers across India while also creating economic opportunities for farmers, a statement said. 
 The company however did not disclose the financial details of the transaction.
 "Partnering with Ninjacart will help Walmart and Flipkart strengthen direct sourcing of fresh produce for Walmart India's Best Price B2B cash-and-carry stores and Flipkart's online grocery business Supermart," it added. 
The investment will also support Ninjacart to expand its customer base, reach new cities and gain exposure to global best practice to enhance the efficiency of the local fresh produce ecosystem, the statement added.
 Ninjacart was founded by Thirukumaran Nagarajan, Kartheeswaran K K, Ashutosh Vikram, Sharath Loganathan and Vasudevan Chinnathambi in 2015.
In the past, Ninjacart has raised money from funds such as Tiger global, Accel partners, Steadview Capital, Syngenta Ventures, Qualcomm ventures and Infosys co-founder Nandan Nilekani. 
 Ninjacart connects farmers to retailers via a network of more than 200 collection centres and 1,200 warehouses across India. It moves over 1,400 tonnes of fresh produce per day.
It has over 44,000 farmer suppliers and a customer base of 60,000 kirana stores and restaurants across seven cities. 
"Developing Flipkart Supermart over the past year, we have focused on creating the right infrastructure, supporting local farmers, producers and food processors, and building sustainability into the ecosystem," Flipkart Group CEO Kalyan Krishnamurthy said. 
 Thirukumaran Nagarajan, CEO and Co-founder of Ninjacart, said with the support of Flipkart and Walmart, the company sees new possibilities to improve the lives of its farmers, retailers and restaurant partners.
The transaction is expected to close by the end of the month. 
 "Ninjacart's focus on direct-from-farm sourcing resonates well with Walmart's commitment to supporting farmers in India. We are working towards our commitment of sourcing 25 per cent of produce in our Best Price cash-and-carry stores directly from farmers by 2023," Walmart India President and CEO Krish Iyer said.
The investment, he said, will help accelerate market access for farmers and reduce transportation costs. SR DRR

Walmart, Flipkart invest in Bengaluru-based Ninjacart

New Delhi, Apr 18 () Walmart Inc, Walmart Foundation and Flipkart on Saturday said they are are supporting India's COVID-19 response by donating personal protective equipment (PPE) for healthcare workers and funds for organisations providing essential relief materials to farmers and small businesses. Walmart Inc and e-commerce major Flipkart will spend Rs 38.3 crore towards in-kind donations into India to help with the front-line response efforts, a statement said. "The companies will focus on providing PPE, such as N95 masks and medical gowns, for distribution by non-government organizations (NGOs) to public healthcare workers. "Walmart and Flipkart have already secured 300,000 N95 masks and 1 million medical gowns, and they will continue to leverage their global supply chains to source these critical necessities for medical workers...," it added. In addition, Walmart Foundation is donating a total of Rs 7.7 crore to Goonj and Srijan -- NGOs supporting vulnerable communities through the crisis. The funds will be used to support the procurement of essential relief materials, such as food, medicine and hygiene items, for distribution by the organisations to support farmers, rural communities, and the micro-businesses, the statement said. "Our customers and associates in India have been deeply impacted by COVID-19 and our hearts continue to be with them. In times like these, we all need to come together to support our communities and the efforts of healthcare workers, NGOs and government organisations," Walmart Executive Vice President and Chief Sustainability Officer, and President of Walmart Foundation Kathleen McLaughlin said. The statement noted that Walmart and Flipkart are making various efforts, including following enhanced hygiene practices across the supply chain and delivery network, insurance and health benefits for workers, contactless deliveries where possible and supporting cashless payments. "Our Flipkart teams are working around the clock to respond to the COVID-19 crisis with care and compassion...The emergency relief efforts we are announcing today underscore our commitment to continuing to work with the private and public sector in India to respond to this unprecedented challenge," Flipkart Group CEO Kalyan Krishnamurthy said. Corporate India has been rushing in to help the government and citizens fight the pandemic. Tata Trusts and Tata group together have pledged Rs 1,500 crore, while Wipro Ltd, Wipro Enterprises Ltd and Azim Premji Foundation have together committed Rs 1,125 crore. A number of other companies have extended support by providing sanitizers, masks and meals to people. SR ABMABM

Walmart, Flipkart commit Rs 46 cr to support India's COVID-19 fight

<ul><li>Indian e-commerce leaders recently had a meeting with the Commerce and Industry Minister <keyword id="6355222" type="PERSON" weightage="20" keywordseo="piyush-goyal">Piyush Goyal</keyword>. </li><li>During the meeting, Goyal told the likes of <keyword id="18635" type="CITY" weightage="20" keywordseo="Amazon">Amazon</keyword> and Flipkart to comply to rules in India. </li><li>Goyal, who was very well prepared for the meeting, had multiple follow up questions for comments made by e-commerce leaders, according to a source.</li></ul>In a closed door meeting with Indian e-commerce leaders held recently, Commerce and Industry minister Piyush Goyal was at his candid best with representatives from Amazon and Flipkart. Goyal not only took a crack at the American multinationals for whining to their home government, he also warned them in no uncertain terms that regulations will catch up if the companies ever tried to side step, a source privy to the discussion told Business Insider. While companies expressed their concerns regarding the uncertainties in the Indian e-commerce space, participants in the meeting were quite impressed by Goyal’s interest and knowledge of the sector. “The minister was very well briefed and had counter questions on most topics for the e-commerce players present in the room,” said the source. India’s new e-commerce rules had introduced tighter guidelines that barred global players like Amazon and the Walmart-owned Flipkart from selling products from vendor companies where they own a stake. During this meeting, Goyal also told Amazon and Walmart's Flipkart that they must ensure compliance with new foreign investment rules and also steer clear of deep discounts on their platforms, according to a <a href="https://in.reuters.com/article/india-ecommerce/rpt-india-warns-foreign-e-commerce-firms-like-amazon-flipkart-over-discounts-sources-idINL4N23X149">Reuters report</a>. Flipkart had recently run into trouble when Indian startup GoQii had accused the Walmart-owned company for running deep discounts on the latter’s products. The report which quoted three sources present in the meeting also said that the government was committed to protecting small traders in India from “predatory behaviour by foreign-funded companies”. In summary, the Indian government has made its priorities clear to the companies and asked them to fall in line.

India's new industry minister is savvy and wary of Amazon and Walmart-owned Flipkart

<ul><li><keyword id="3820" type="PERSON" weightage="20" keywordseo="Mukesh-Ambani">Mukesh Ambani</keyword> is withdrawing <keyword id="58448" type="COMPANY" weightage="20" keywordseo="Reliance-Retail">Reliance Retail</keyword> products from future rival e-commerce platforms, Flipkart and <keyword id="6354743" type="COMPANY" weightage="20" keywordseo="Amazon-India">Amazon India</keyword>.</li><li>The Ambani-owned enterprise is aiming for exclusivity, according to a report by the Economic Times.</li></ul>Mukesh Ambani’s e-commerce plans are starting to move faster as products from Reliance Industries are being withdrawn from the shelves of future rivals, Amazon India and Walmart-owned Flipkart. According to a <a href="https://economictimes.indiatimes.com/industry/services/retail/ahead-of-etail-launch-reliance-industries-pulls-out-brands-from-rivals/articleshow/68914949.cms">report</a> by the Economic Times, it’s not just products that are Reliance-branded but also include <a href="https://relianceretail.com/partner-brands.html">over</a> 40 Reliance-affiliated global brands. And, whatever inventory is still available, is only there until it runs out since Reliance isn’t taking any new orders either. The reason for removing Reliance products from Amazon India and Flipkart is because Ambani is reportedly trying to create exclusivity around the brands that comes under its umbrella. Sources told the Economic Times that Reliance Trends and <keyword id="74639" type="PERSON" weightage="20" keywordseo="Reliance-Brands">Reliance Brands</keyword> have also reportedly been told to speed up the ‘phasing-out process’ from non-Reliance marketplaces in the coming weeks. Ambani’s e-commerce model is already being <a href="https://www.businessinsider.in/e-commerce-wars-amazons-jeff-bezos-vs-mukesh-ambani-in-india/articleshow/67620116.cms">tested</a> in Gujarat where Reliance has an existing network of 1.2 million local shopkeepers thanks to the Reliance Retail’s offline reach. And the blow to Amazon and Flipkart dealt by India’s new e-commerce rules in February only worked in Ambani’s favour. The <keyword id="7538599" type="UNKNOWN" weightage="20" keywordseo="richest-man-in-asia">richest man in Asia</keyword> has the home field advantage in India with Reliance Retail’s network of 3.5 million customers every week across 6,500 Indian cities and towns having been around since 2006. See also: <a href="https://www.businessinsider.in/Mukesh-Ambani-may-be-the-surprise-winner-from-Indias-new-rules-hurting-Amazon-and-Walmart/articleshow/67751026.cms">Mukesh Ambani may be the surprise winner from India's new rules hurting Amazon and Walmart</a> <a href="https://www.businessinsider.in/e-commerce-wars-amazons-jeff-bezos-vs-mukesh-ambani-in-india/articleshow/67620116.cms">Amazon's newest challenger may be the richest man in Asia</a>

Mukesh Ambani is clearing the way for the launch of his e-commerce business

<ul><li>Morgan Stanley has warned that Walmart may exit from Flipkart. </li><li>India’s new e-commerce rule brought in tighter FDI guidelines in order to boost Indian marketplaces. </li><li>Under new rules, Flipkart will have to do away with 25% of its products on the platform.</li></ul>Walmart’s biggest ever deal in history could soon be a thing of the past. Walmart’s acquisition of Indian unicorn Flipkart for $16 billion was one of the world’s biggest e-commerce deals. It now stands in jeopardy as the retail giant could make an exit from Flipkart in the wake of India’s <keyword id="7170085" type="UNKNOWN" weightage="20" keywordseo="new-e-commerce-rules">new e-commerce rules</keyword>, according to a report by <a href="https://economictimes.indiatimes.com/industry/services/retail/morgan-stanley-warns-walmart-may-exit-flipkart-post-new-fdi-rules/articleshow/67843595.cms">Morgan Stanley</a>, which said an exit by Walmart is not out of the question with the Indian e-commerce market becoming “more complicated.” “Despite the recent changes in regulations, we remain optimistic abo the ecommerce opportunity in India given the size of the market, the low penetration of ecommerce in the retail channel and the pace at which it is growing. As Walmart scales in India, the company will continue to partner to create sustained economic growth across agriculture, food and retail. Future investments will support national initiatives and will bring sustainable benefits to the country,” a Walmart spokesperson told <a href="https://economictimes.indiatimes.com/industry/services/retail/morgan-stanley-warns-walmart-may-exit-flipkart-post-new-fdi-rules/articleshow/67843595.cms">ET.</a> India’s new e-commerce rules have introduced tighter guidelines that govern Indian e-commerce companies. With the new rules, global players like Amazon or the Walmart-Flipkart entity, are barred from selling products from vendors they have own a stake in. According to the Morgan Stanley report, Flipkart will have to do away with 25% of its products on the platform. The new rules have mounted tremendous pressure on both Amazon and Flipkart, which together command over <a href="https://economictimes.indiatimes.com/small-biz/startups/newsbuzz/amazon-india-reportedly-closing-in-on-flipkart/articleshow/63407725.cms">60%</a> of the market share in Indian e-commerce. According to a report in <a href="https://economictimes.indiatimes.com/small-biz/startups/newsbuzz/amazon-flipkart-sales-fall-a-third-as-fdi-norms-kick-in/articleshow/67826139.cms">ET</a>, Amazon and Flipkart saw a third of their sales volume disappear in just three days, after the new rules came in. Last week, Amazon <a href="https://www.businessinsider.in/amazon-india-finds-way-around-new-e-commerce-rules-for-cloudtail-and-appario/articleshow/67831376.cms">reportedly</a> already began removing several items from its website sold via its vendor Cloudtail including products under the brand name “Amazon Basics”. Walmart which has <a href="http://fortune.com/2018/02/20/walmart-ecommerce-3/">failed</a> to make an impact on e-retail globally, had placed its bets on Flipkart to start off its digital wing. Flipkart being one of the biggest e-commerce platforms of India, put Walmart in direct competition with Amazon. However, with the change in scenario it is possible that Walmart might not want to incur a <a href="https://www.bloombergquint.com/technology/walmart-expects-flipkart-to-suffer-rs-5300-crore-loss-this-year#gs.JsJmhTUD">loss</a> in India. See Also: <a href="https://www.businessinsider.in/amazon-india-finds-way-around-new-e-commerce-rules-for-cloudtail-and-appario/articleshow/67831376.cms">Amazon may have found a way around India’s new e-commerce rules</a> <a href="https://www.businessinsider.in/amazon-and-walmart-which-owns-flipkart-stocks-on-sale-as-indias-new-e-commerce-policy-kicks-in/articleshow/67807890.cms">The sale on Amazon and Walmart stocks in US may worsen as new India's e-commerce rules kick in</a> <a href="https://www.businessinsider.in/amazon-walmart-owned-flipkart-set-back-by-new-e-commerce-rules-that-help-mukesh-ambanis-reliance-retail/articleshow/67751026.cms">Mukesh Ambani may be the surprise winner from India's new rules hurting Amazon and Walmart</a>

Walmart could exit from Flipkart because of India’s new FDI rules: Report

<ul><li>The <keyword id="5189" type="ORGANIZATION" weightage="20" keywordseo="competition">Competition</keyword> Commission of India (<keyword id="47183" type="ORGANIZATION" weightage="20" keywordseo="CCI">CCI</keyword>) has approved <keyword id="80487" type="COMPANY" weightage="20" keywordseo="walmart">Walmart</keyword>’s <keyword id="30334" type="ORGANIZATION" weightage="20" keywordseo="acquisition">acquisition</keyword> of a 77% stake in <keyword id="6354742" type="COMPANY" weightage="20" keywordseo="Flipkart">Flipkart</keyword>. </li><li>The deal, which is slated for completion next year, will be one of the largest in India’s corporate history. </li><li>The greenlight marks the culmination of three months of deliberations by the CCI over the validity of the deal.</li></ul>The investors of Flipkart can rejoice for they’re about to earn a very handsome profit on their investment in the Indian e-commerce platform. The Competition Commission of India (CCI), the country’s competition and antitrust regulator, has approved Walmart’s $16 billion acquisition of a 77% stake in Flipkart, paving the way for the deal to be completed by mid-2019. The deal is the one of the largest in the history of India’s private sector. 
 
 
 
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 The greenlight marks the culmination of three months of deliberations over the validity of the deal. Reports surfaced in June that the regulator would impose structural changes to the deal to alleviate antitrust concerns. An example of this was the possible establishment of a long-term fund to support small businesses and kirana stores. Walmart announced the acquisition in May 2018. However, the deal has received a lot of backlash from industry bodies, specifically the Confederation of All India Traders (CAIT), which said that the deal would <a href="https://www.businessinsider.in/indias-small-businesses-are-against-walmarts-acquisition-of-flipkart/articleshow/64064439.cms">hurt competition and encourage “predatory pricing” tactics</a> and loss leadership in India’s e-commerce market. In its ruling, the CCI expressed its concern at the habits of deep discounting and preferential access to sellers that are so intrinsic to the industry. However, it said that these habits did not have a bearing on whether or not the deal should be approved. The CCI added that the deal would not “adversely affect competition” in the sector. In response to the <keyword id="49677" type="CITY" weightage="20" keywordseo="approval">approval</keyword>, the CAIT has said it will file an appeal in court. However, the CCI’s decision is likely final. As per the Indian government’s draft e-commerce policy, a regulator will be established for the sector. The policy also calls for the localisation of data, the increased participation of small businesses on online retail platforms and limits the amount of influence a platform has on cutting prices by preventing bulk purchases of goods from third-party sellers and introducing a pre-determined discount window. Next steps for Walmart and Flipkart With the deal sealed, Walmart is expected to send a large group of senior executives to India to oversee the merger and analyse the Indian market. It will also onboard a number of private labels and vendors to Flipkart’s platform. Meanwhile, Flipkart is readying the rollout of its online grocery operation - Supermart. It will reportedly <a href="https://economictimes.indiatimes.com/small-biz/startups/newsbuzz/flipkart-has-a-264-million-plan-for-grocery-store-supermart/articleshow/65331338.cms">invest $264 million</a> in the business over the next three years. After launching in Bengaluru earlier this summer, the service is expected to go live in Delhi, Chennai and Hyderabad by the end of 2018.

India’s competition regulator has given the Walmart-Flipkart deal a greenlight

<ul><li>The completion date for the deal has been shifted from March to June 2019. </li><li>In doing so, the US retail giant is giving itself more time to raise the $16 billion worth of funds required for the purchase to go through. </li><li><keyword id="80487" type="COMPANY" weightage="20" keywordseo="walmart">Walmart</keyword> is financing the deal through a large bond sale, but this might be harder than expected due to investor skepticism. </li></ul>Walmart is postponing the completion date for its acquisition of the 77% stake in Indian <keyword id="35621" type="PERSON" weightage="20" keywordseo="e-commerce">e-commerce</keyword> upstart <keyword id="6354742" type="COMPANY" weightage="20" keywordseo="Flipkart">Flipkart</keyword> to 7 June 2019. This is around three months after the original deadline that was set for 9 March, as stipulated in the share purchase agreement. In doing so, the US retail giant is giving itself more time to raise the $16 billion worth of funds required for the purchase to go through. It is financing the deal through the issue of a <a href="https://www.livemint.com/Companies/0wLpb3dAlDTAdTduaBVEUO/Walmart-kickstarts-mega-fundraising-to-finance-Flipkart-deal.html">nine-tiered bond offering </a>in the US. If it isn’t able to raise the full amount by June, the deal could be in danger of falling apart. The company, however, still maintains that the deal could close by the end of 2018 if the bond issue proves extremely successful. This scenario is unlikely, however, given the level of skepticism regarding the deal on Wall Street, Walmart is provisioning for a longer funding schedule. In May, <a href="https://www.spglobal.com/marketintelligence/en/news-insights/latest-news-headlines/44541109">a report on S&amp;P Global Ratings</a>, a credit rating agency, referred to the acquisition as Walmart’s “second pricey deal for an unprofitable e-commerce startup” following the purchase of Jet.com for $3.3 billion in August 2016. The agency lowered its outlook for Walmart from “neutral” to “negative”, given its decision to partly fund the deal with debt. A number of analysts cited tremendous costs associated with growing an e-commerce company, something that Walmart has no track record of achieving successfully, as well as the competition posed by <keyword id="18635" type="CITY" weightage="20" keywordseo="Amazon">Amazon</keyword> in India. It was predicted that the deal would result in significant losses in the short term for Walmart. Opposition to the deal A lack of demand for the bond offering isn’t the only potential problem that Walmart has to deal with in the near term. It has to a get a spate of regulatory approvals in India, including a go-ahead from the Competition Commission. Regulatory authorities will have to take into consideration any possible threats to the livelihoods of business owners and competition in the industry as a result of the deal. Walmart and Flipkart have consistently said that their combined entity will not be a consumer-facing retailer as much as a business-to-business seller, given Walmart’s lack of presence in the direct retail market in India. Around one million traders and small business owners are planning to hold a nationwide protest against the deal today, citing Walmart’s habit of deep discounting, undercutting suppliers as well as sourcing goods from outside the country. The body organising the protest, the Confederation of All India Traders (CAIT), has also stated that it could challenge the deal in court if it gets regulatory approval. Apart from the deal being cancelled, the CAIT’s major request is for the government to formulate a national e-commerce policy, which will provide for the establishment of an exclusive regulator for the industry. Given that it is an election year, the Modi administration will have to tread lightly. On one hand, it has to prove its business-friendly credentials, but on the other, it has to show that it cares about the needs of traders and owners of small businesses.

Walmart-Flipkart deal will take longer to close due to a possible delay in fundraising

<div class="KonaFilter image-container display-table"><div><div class="image on-image">Paras Griffin/Getty Images for 2017 ESSENCE FestivalPresident and CEO of Wal-Mart Stores, Inc Doug McMillon speaks onstage at the 2017 ESSENCE Festival presented by Coca-Cola at Ernest N. Morial Convention Center on June 30, 2017 in New Orleans, Louisiana.</div></div></div><ul><li><a href="http://markets.businessinsider.com/stocks/wmt-stock">Walmart</a> is planning to buy back $20 billion of its own shares over the next two years. </li><li>But its $16 billion Flipkart acquisition could put a dent in those plans, according to RBC Capital Markets analyst Scot Ciccarelli. </li><li><a href="http://markets.businessinsider.com/stocks/wmt-stock">Watch Walmart trade in real time here.</a></li></ul>There's a different risk to <a href="http://markets.businessinsider.com/stocks/wmt-stock">Walmart</a>'s Flipkart acquisition than what everybody's talking about. While most of the concern on Wall Street surrounding Walmart's Flipkart acquisition has centered on <a href="http://markets.businessinsider.com/news/stocks/walmarts-stock-price-next-acquisition-could-be-bust-2018-4-1022444456?utm_source=markets&amp;utm_medium=ingest">whether or not the Indian e-commerce giant can be profitable anytime soon</a>, RBC Capital Markets analyst Scot Ciccarelli is worried about something else: the cash Walmart has available for its share buyback program. "The company outlined plans to repurchase roughly $10 billion worth of shares in both 2018 and 2019," Ciccarelli wrote in a note out to clients Friday morning. "We question, however, whether the acquisition of Flipkart will have an impact on these plans." Earlier this month, Walmart announced plans to <a href="http://www.businessinsider.com/flipkart-walmart-buying-a-controlling-stake-2018-5">buy 77% of Flipkart for $16 billion</a>. Walmart announced in October that it <a href="http://www.businessinsider.com/walmart-stock-price-20-billion-buyback-announcement-2017-10">plans to buy back $20 billion of its stock</a> within the next two years. Half of that is supposed to take place in 2018, according to Ciccarelli. And there seems to have been a disconnect between how Walmart intends to execute this plan, and how the plan is actually unfolding. Walmart recently held a conference call regarding the Flipkart purchase, and indicated that it will hardly - if at all - deviate from the original buyback plan."On the May 9th call to discuss the acquisition, management indicated that it will 'continue our share buyback roughly as we talked about with you in October,'" Ciccarelli noted. "However, repurchases in quarter-one slowed to just $539 million from average of $2.1 billion per quarter in 2017 and 2016." Walmart will only be able to accomplish $6 billion of buybacks for 2018, Ciccarelli estimates. For context, Walmart's buyback plan is fairly large. In <a href="http://www.businessinsider.com/trump-tax-reform-plan-repatriation-14-us-companies-with-most-cash-overseas-2017-9?utm_source=markets&amp;utm_medium=ingest">a year of heavy buyback activity</a>, Apple announced one of the largest buyback plans of all. <a href="http://markets.businessinsider.com/news/stocks/apple-stock-price-what-to-do-with-huge-cash-pile-2018-4-1022917605">The tech behemoth is planning to repurchase $25 billion of its own stock over the next 5 years</a>. Walmart is down 14.6% this year. <div class="KonaFilter image-container display-table"><div><div class="image on-image"><a href="http://markets.businessinsider.com/stocks/wmt-stock"></a>Markets Insider</div></div></div> <div class="margin-top"> <h3>NOW WATCH: <a href="http://www.businessinsider.com/ian-bremmer-globalism-american-dream-dead-chinese-dream-alive-2018-5">Ian Bremmer: Why the American dream doesn't exist anymore</a></h3> <div> </div> </div>

Walmart's Flipkart deal has one analyst questioning whether the company can fulfill a big promise it just made to shareholders

<ul class="summary-list"><li>US private equity firm <keyword id="6354544" type="UNKNOWN" weightage="60" keywordseo="kkr">KKR</keyword> will invest $755 million in <keyword id="58448" type="COMPANY" weightage="60" keywordseo="Reliance-Retail">Reliance Retail</keyword>, owned by <keyword id="3658" type="COUNTRY" weightage="60" keywordseo="India">India</keyword>’s biggest company <keyword id="6355199" type="ORGANIZATION" weightage="60" keywordseo="reliance-industries">Reliance Industries</keyword>, for a 1.2% stake.</li><li>This is KKR’s second <keyword id="6355120" type="UNKNOWN" weightage="60" keywordseo="investment">investment</keyword> in Reliance Industries — in May it invested $1.5 billion in Jio Platforms, Reliance’s digital arm that includes India’s largest mobile network.</li><li>The new investment values Reliance <keyword id="6354851" type="UNKNOWN" weightage="100" keywordseo="retail">Retail</keyword> at 4.21 trillion rupees ($57 billion).</li><li>Reliance has courted investors about its retail arm in recent months, including Silver Lake and, reportedly, Amazon.</li></ul>US private equity firm KKR will invest $755 million in the retail unit of India's biggest company, Reliance Industries, <a href="https://www.ril.com/getattachment/006e6f9c-d074-4fa3-81e9-a74a7a841079/KKR-TO-INVEST-%E2%82%B9-5,550-CRORE-IN-RELIANCE-RETAIL-VEN.aspx">it said on Wednesday</a>. KKR's investment for a 1.28% stake in Reliance Retail values the company at 4.21 trillion rupees ($57 billion), Reliance said.This is KKR's second investment in Reliance Industries — in May, it invested $1.5 billion Jio Platforms, Reliance's digital arm, which includes India's largest mobile network.It means that investors have poured $1.78 billion into Reliance Retail within a month. Tech investor Silver Lake will invest <a href="https://www.ril.com/getattachment/ae325405-1207-4f86-8874-3f24111b2b16/Silver-Lake-to-Invest-%E2%82%B9-7,500-Crore-in-Reliance-Re.aspx">$1.02 billion</a> in Reliance Retail, it said on September 9, after making a <a href="https://www.ril.com/getattachment/2cc98337-9b5b-4896-817f-524a69097b53/Silver-Lake-to-Invest-%E2%82%B9-5,655-75-Crore-in-Jio-Plat.aspx">$1.35 billion</a> investment in Jio Platforms in May.As India's biggest retailer, Reliance Retail owns around 12,000 stores, including convenience shops, supermarkets, apparel stores, and electronics stores. Most are in India, but it also owns Hamleys in London — the oldest and largest toy shop in the world.It turned over around $20 billion in the year to March 2020, an increase of 27% on the year before. Reliance struck a $3.38 billion deal last month to acquire rival Future Group's retail business.<h3>Reliance lined up other investors</h3>Reliance Industries, controlled by Asia's richest man <keyword id="3820" type="PERSON" weightage="60" keywordseo="Mukesh-Ambani">Mukesh Ambani</keyword>, has been lining up investors for Reliance Retail in recent months.Reliance Industries <a href="https://www.businessinsider.com/india-reliance-retail-offers-amazon-stake-worth-20-billion-report-2020-9">offered to sell Amazon a 40% stake</a> in Reliance Retail in a deal that could be worth $20 billion, a source told <a href="https://www.bloomberg.com/news/articles/2020-09-10/reliance-said-to-offer-20-billion-stake-in-retail-arm-to-amazon?srnd=premium">Bloomberg News</a>. Reliance later called this "speculative" and <a href="https://www.thehindu.com/business/Industry/reliance-terms-reports-of-stake-sale-to-amazon-speculative/article32579297.ece">said</a> it "cannot confirm or deny any transaction which may or may not be in the works."It follows an investment drive for Jio Platforms, which includes India's largest mobile network operator as well as streaming services and a video-conferencing app. Reliance has received $20 billion this year from global investors, including Facebook, for Jio Platforms, and has approached many of those same firms about Reliance Retail, <a href="https://www.reuters.com/article/idUSKBN25R1U4">Reuters reported</a>.Reliance Retail and Jio Platforms launched <keyword id="35621" type="PERSON" weightage="60" keywordseo="e-commerce">e-commerce</keyword> platform <keyword id="8506093" type="UNKNOWN" weightage="60" keywordseo="Jiomart">JioMart</keyword> in May. It plans to expand beyond groceries and is becoming a major, fast-growing rival to Amazon and Walmart's Flipkart in India.

India's biggest retailer Reliance Retail is now valued at $57 billion, following a fresh investment from KKR

While discount-hungry consumers might be rejoicing at news of the Walmart-<keyword id="6354742" type="LOCATION" weightage="20" keywordseo="Flipkart">Flipkart</keyword> deal, wherein the US retail giant plans to purchase a majority stake in Flipkart for $15 billion, it also has a major detractor for the very same reason. The Confederation of All-India Traders (CAIT), a national association of small businesses and traders, has said that the proposed deal will hurt competition and encourage further <a href="https://www.businessinsider.in/India-your-e-commerce-discounts-are-safe/articleshow/63928216.cms">loss leadership </a>and “predatory pricing” tactics in India’s e-commerce market. It also observed that <keyword id="80487" type="ORGANIZATION" weightage="100" keywordseo="walmart">Walmart</keyword> was choosing to enter India via the e-commerce route after being denied entry to the country’s multi-brand retail sector. The trade body called on the Indian government to form a national regulator exclusively for the e-commerce sector and to put the Walmart-Flipkart deal on ice until such a body had been formed. Flipkart’s board is said to have already approved a sale to Walmart, leaving competitor <keyword id="18635" type="ORGANIZATION" weightage="20" keywordseo="Amazon">Amazon</keyword> in the lurch. The deal, which is the largest in India’s retail sector, will have widespread implications for the country’s fast-growing online shopping market, which is shaping up to be a duopoly featuring Flipkart and Amazon. The Indian e-tailer will get access to Walmart’s products while the latter will be able to leverage Flipkart’s well-oiled logistics and supply chain network. However, the deal could harm India’s small businesses, especially given Walmart’s habit of driving down its suppliers margins in order to keep prices low. Earlier this week, another trade body, the All India Online Vendors' Association (AIOVA ) said that the 3,500 sellers registered with it were <a href="https://economictimes.indiatimes.com/small-biz/startups/newsbuzz/sellers-on-flipkart-jittery-ahead-of-deal-with-walmart-aiova/articleshow/64028643.cms">uncertain as to their future</a> in light of the deal. If Walmart were to introduce its own private labels in general merchandise to the online shopping platform, it could crowd out domestic suppliers, the AIOVA said. There are also concerns that Flipkart’s algorithm could give an unfair advantage to Walmart’s labels. The Indian government, which has been aware of these issues for a while, is set to launch a <a href="https://economictimes.indiatimes.com/small-biz/policy-trends/e-commerce-policy-framework-to-be-ready-in-6-months/articleshow/63902314.cms">regulatory framework for the e-commerce sector</a> in six months. The policy framework is expected to address the issues of discounts, foreign investments and a lack of competition. The protests from trade bodies are not the only hurdle that the Walmart-Flipkart deal is facing. Japan’s Softbank, which owns a 20% stake in Flipkart, is looking for ways to offload its holding to Walmart without <a href="https://www.livemint.com/Industry/AqFDQe7iRwScMK6Rn2bxAL/SoftBank-weighs-options-to-cut-tax-liability-in-Flipkart-sta.html">incurring a heavy tax bill</a>. It could even delay the stake sale until next year in order to reduce its tax liability.

You Searched For "Walmart Flipkart" and got 12 results

Walmart's Flipkart is targeting a 4th-quarter IPO that could value it at $35 billion, new report says

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Walmart's Flipkart considers going public in the US via SPAC, report says

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Walmart, Flipkart invest in Bengaluru-based Ninjacart

PTI

Walmart, Flipkart commit Rs 46 cr to support India's COVID-19 fight

PTI

India's new industry minister is savvy and wary of Amazon and Walmart-owned Flipkart

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Mukesh Ambani is clearing the way for the launch of his e-commerce business

Prabhjote Gill

Walmart could exit from Flipkart because of India’s new FDI rules: Report

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India’s competition regulator has given the Walmart-Flipkart deal a greenlight

Walmart-Flipkart deal will take longer to close due to a possible delay in fundraising

Dilsher Dhillon

Walmart's Flipkart deal has one analyst questioning whether the company can fulfill a big promise it just made to shareholders

Jacob Sonenshine

India's biggest retailer Reliance Retail is now valued at $57 billion, following a fresh investment from KKR

Grace Dean,Reuters

India's small businesses are against Walmart’s acquisition of Flipkart

Dilsher Dhillon

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