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<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

<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 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

<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><li>Flipkart is planning an IPO in the US by 2022. </li><li>Co-founder <keyword id="6364080" type="PERSON" weightage="20" keywordseo="binny-bansal">Binny Bansal</keyword> has also sold a part of his stake in the company for $76.4 million.</li><li>Reports have been doing the rounds about <keyword id="80487" type="COMPANY" weightage="20" keywordseo="walmart">Walmart</keyword> planning an exit from its biggest investment, because of India’s new e-commerce rules making the market complicated.</li></ul>Within a year of Walmart acquiring Flipkart, the global giant might exit it as Indian e-commerce player plans to raise money in the US markets. Flipkart<a href="https://economictimes.indiatimes.com/markets/ipos/fpos/flipkart-charts-roadmap-for-us-listing-by-2022/articleshow/69920934.cms"> is reportedly </a>heading for Initial Public Offer (IPO) in 2022 in the US, and this might mark the exit of its largest investor, Walmart. According to the ET report, Flipkart CEO Kalyan Krishnamurthy has already told his senior management to get ready for an IPO, and also aim at achieving profitability. Cashing out But it doesn’t stop there. Flipkart co-founder Binny Bansal, who had exited from all operational roles in the company over allegations of personal misconduct, has also sold a part of his shares for $76.4 million, according to filings sourced by paper.vc. Now, Bansal has a residual share of 3.52% in the company, down from 3.85%. Paper.vc also reported that Bansal had cashed out $159 million during the sale of Flipkart. Walmart had then acquired 77% stake in Flipkart for $16 billion. Reports have long been doing the rounds about Walmart planning an exit from the Indian retail company. While Flipkart’s latest revenue reports are not in, the company reported a loss of ₹11.6 billion in March 2018. <a href="https://yourstory.com/2019/06/ecommerce-walmart-funding-flipkart">Walmart</a> was also considering to pump in $1.2 billion more to fund Flipkart’s operations. Earlier in February 2019, Morgan Stanley also warned Walmart about its plans for the India market – the Indian e-commerce market was becoming “more complicated.” This report from Morgan Stanley had come after India’s new e-commerce rules which introduced tighter guidelines. As per 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. Meanwhile, an Indian player which would be exempt from these rules is – Mukesh Ambani owned Jio along with <a href="https://www.livemint.com/companies/news/reliance-retail-testing-grocery-app-before-launch-of-e-commerce-platform-1556042589629.html">Reliance Retail</a>. It is planning its e-commerce debut which could also threaten the market share of the current players. See Also: <a href="https://www.businessinsider.in/govt-panel-on-new-e-commerce-rules-for-amazon-walmart-flipkart-and-snapdeal/articleshow/69892213.cms">A new government panel is looking at making e-commerce easier in India-- but it may be too soon to cheer for Amazon and Walmart</a>

Flipkart’s IPO in the US could see Walmart exit, Binny Bansal has already begun cashing himself out

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.

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

<div class="KonaFilter image-container display-table"><div><div class="image on-image">Jim Anderson/AP Photos</div></div></div><ul><li><a href="http://markets.businessinsider.com/stocks/wmt-stock">Walmart</a>'s acquisition of Flipkart has investors worried.</li><li>E-commerce is getting increasingly competitive in the US, and Morgan Stanley analyst Simeon Gutman thinks Walmart should be investing more in the US. </li><li>While Flipkart isn't expected to be profitable soon, Gutman does believe there is long-term growth potential in India. </li><li><a href="http://markets.businessinsider.com/stocks/wmt-stock">Watch Walmart trade in real time here.</a> </li></ul><a href="http://markets.businessinsider.com/stocks/wmt-stock">Walmart</a>'s decision to purchase Indian e-commerce leader Flipkart has investors worried the US retail giant is neglecting one of its core businesses: Walmart US. <a href="http://markets.businessinsider.com/news/stocks/walmart-stock-price-flipkart-majority-stake-2018-5-1023879080">Walmart announced Wednesday it will pay $16 billion for a 77% stake in Flipkart</a>. Investors did not applaud the news, as Walmart shares dropped 4% on the announcement. But Walmart President and CEO Doug McMillon defended the company's move. "India is one of the most attractive retail markets in the world, given its size and growth rate, and our investment is an opportunity ," he said in the press release for the acquisition. Still, investors are worried, according to a note from Morgan Stanley analyst Simeon Gutman. "Investors are questioning why Walmart is investing outside the US market (~2/3 of total revenue and ~75% of total EBIT) at a time when Amazon is stepping up its infrastructure/distribution related investments," Gutman wrote.He added "this investment will pull management attention from the US market at a time when competition has never been tougher."<a href="http://markets.businessinsider.com/news/stocks/amazon-stock-price-whole-foods-could-be-cheaper-than-most-grocery-stores-2018-5-1023168688">Amazon has been increasing its footprint in groceries</a>, and its tech-minded approach is <a href="http://markets.businessinsider.com/news/stocks/amazon-stock-price-amazon-has-created-a-tipping-point-in-online-groceries-2018-4-1022012798">forcing most grocers to adapt</a> in an increasingly competitive environment. "Walmart is still a distant second in what we see as a two player omni-channel race in the US market," Gutman said. Instead of allocating that cash to international ambitions, Gutman said, Walmart should have used it to optimize its third-party marketplace capabilities in order to compete with Amazon. Still, there is an argument to be made for Walmart's Flipkart investment. While profitability isn't on the cards in the short-term, Gutman sees a long-term growth story in India for Walmart. "India represents a massive long-term opportunity," he wrote. "The Flipkart acquisition effectively prevents AMZN from gaining an insurmountable advantage in this important market."Walmart is down 15.29% on the 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/jeff-bezos-breaking-up-regulating-amazon-2018-4">Jeff Bezos on breaking up and regulating Amazon</a></h3> <div> </div> </div>

Walmart could be neglecting a key business by purchasing Flipkart

<ul><li><keyword id="80487" type="COMPANY" weightage="20" keywordseo="walmart">Walmart</keyword> likely to purchase 75% stake in <keyword id="6354742" type="COMPANY" weightage="20" keywordseo="Flipkart">Flipkart</keyword>, making it the largest <keyword id="30334" type="ORGANIZATION" weightage="20" keywordseo="acquisition">acquisition</keyword> deal for the company. </li><li>Alphabet Inc., Google’s parent company may also be looking to invest in Flipkart. </li><li><keyword id="225032" type="PERSON" weightage="20" keywordseo="Sachin-Bansal">Sachin Bansal</keyword>, Flipkart co-founder, might be stepping down.</li></ul>Update: Flipkart's board has <a href="https://www.bloomberg.com/news/articles/2018-05-04/flipkart-board-is-said-to-approve-15-billion-deal-with-walmart" data-type="tilCustomLink">reportedly</a> approved a deal for Walmart to acquire 75% of the Indian e-commerce company. The Walmart-Flipkart drama deal is <a href="http://www.bgr.in/news/walmart-acquires-flipkart-buys-73-percent-stake-usd-14-billion-amazon-binny-sachin-bansal-ceo-kalyan-krishnamurthy/">reportedly</a> finalised. The American company has apparently agreed to purchase a 73% stake in the Indian online shopping portal, taking Flipkart’s <a href="https://factordaily.com/walmart-to-buy-73-per-cent-of-flipkart/">valuation</a> to somewhere between $20-22 billion. This means the American giant will be spending at least $14.6 billion in the cash-and-stock buyout. Both the companies have signed tentative agreements on May 3, 2018, and the deal will apparently involve a mixture of cash and stock, with the cash component amounting to around 55%. Event Alphabet Inc., Google’s parent company, might a part of this agreement by way of a $3 billion investment. But there’s more to this merger than just the two company’s coming together. While <keyword id="6379357" type="PERSON" weightage="20" keywordseo="kalyan-krishnamurthy">Kalyan Krishnamurthy</keyword> will continue as Flipkart’s CEO, the company’s founder, Sachin Bansal will <a href="https://economictimes.indiatimes.com/small-biz/startups/newsbuzz/walmarts-entry-into-flipkart-may-see-sachin-bansals-exit/articleshow/64023197.cms?from=mdr">probably</a> be stepping down. Not only will he be leaving the company’s day-to-day activities, he will also be giving up his seat on the board of directors. Co-founder, <keyword id="6364080" type="PERSON" weightage="20" keywordseo="binny-bansal">Binny Bansal</keyword>, will probably remain after the merger since reports have indicated that Walmart is keen on keeping one of them. The Walmart-Flipkart deal has ruffled a lot of feathers but despite the turn out, the company’s biggest investor, <keyword id="163404" type="COMPANY" weightage="20" keywordseo="Softbank">SoftBank</keyword>, will be leaving the foray. They weren’t particularly amped about the deal when it was being initiated and now that it seems to be final, SoftBank plans on selling off its 25% stake in the company to earn nearly $5 billion. Essentially, SoftBank’s doubled their investment of $2.5 billion in less than a year. Flipkart’s other investors, like Tencent, Microsoft and Tiger Global aren’t looking to cash out just yet. The conclusion of this deal will ideally result in one of the largest acquisitions involving an Indian company. It will also be one the biggest acquisition deals by Walmart.

Indian unicorn Flipkart's board approves $15 billion deal with Walmart

<div class="KonaFilter image-container display-table"><div><div class="image on-image">AP/Nick Ut</div></div></div><ul><li><a href="http://markets.businessinsider.com/stocks/wmt-stock">Walmart</a> wants to buy Flipkart, India's version of Amazon.</li><li>Walmart has entered the e-commerce space mainly through acquisitions. </li><li>This purchase is a bad idea, Oppenheimer analyst Rupesh Parikh wrote in a note to clients. </li><li><a href="http://markets.businessinsider.com/stocks/wmt-stock">Watch Walmart trade in real time here.</a></li></ul><a href="http://markets.businessinsider.com/stocks/wmt-stock">Walmart</a>'s foray into e-commerce has been mainly through acquisitions, and the next move it could make may be a bust, according to Oppenheimer analyst Rupesh Parikh. "We view a potential acquisition of Flipkart as potentially negative in the shorter term as it likely leads to earnings dilution," Parikh wrote. Flipkart is India's version of Amazon.<a href="http://www.businessinsider.com/r-walmart-could-buy-controlling-stake-in-flipkart-as-early-as-next-week-sources-2018-4">Walmart is reportedly in talks with Flipkart to acquire a 51% stake in the company</a> for between $10 billion and $12 billion. Walmart recently <a href="http://www.businessinsider.com/walmart-is-acquiring-bonobos-for-310-million-2017-6">bought Bonobos for $300 million</a> and <a href="http://www.businessinsider.com/walmart-is-buying-jetcom-2016-8">Jet.com for $3.3 billion</a>. The <a href="http://www.businessinsider.com/jet-walmart-weapon-vs-amazon-2017-9">Jet.com acquisition is said to be Walmart's most potent weapon in its battle against Amazon </a>for share in the e-commerce space. But the potential Flipkart purchase would likely detract value from Walmart because it would suffer "potential dilution related to a Flipkart stake,"Parikh wrote. While Flipkart's financials are hard to track down, it is reported the company lost roughly $1.4 billion on $3 billion of revenue last year.Parikh assumes Flipkart will lose about $750 million in 2018, which underpins his estimate that a Walmart acquisition of the Indian e-commerce giant would dilute Walmart's earnings-per-share by 5%. Mathematics aside, Parikh also warns the purchase "could unnerve investors playing for an intermediate-term earnings acceleration."Parikh emphasized that he has little knowledge of Flipkart's financials, and that his dilution estimate is strictly for the short-term. Walmart is down 10.57% on the 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/wall-street-bull-explains-trade-war-trade-war-fears-overblown-2018-4">Wall Street's biggest bull explains why trade war fears are way overblown</a></h3> <div> </div> </div>

Walmart's next acquisition could be a bust - at least in the near-term, analyst says

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

(Photo Source : Wikimedia.org) <ul><li><keyword id="6364080" type="PERSON" weightage="20" keywordseo="binny-bansal">Binny Bansal</keyword>, co-founder of the Indian e-commerce retailer, <keyword id="6354742" type="COMPANY" weightage="20" keywordseo="Flipkart">Flipkart</keyword>, resigned on Tuesday following allegations of personal misconduct. </li><li>That being said, Bansal has strongly denied allegations against him. </li><li>The alleged misconduct involved a sexual harassment complaint dating back a few years, said media reports.</li></ul>In his <a href="https://timesofindia.indiatimes.com/business/india-business/stunned-by-allegations-challenging-time-for-my-family-and-me-binny-bansal/articleshow/66607778.cms">parting letter</a> to Flipkart’s employees, Binny Bansal, strongly refuted all allegations of ‘misconduct’ which forced him to step down as the Chief Executive of the Flipkart Group. Neither Binny Bansal nor <keyword id="80487" type="COMPANY" weightage="20" keywordseo="walmart">Walmart</keyword>, which <a href="https://www.businessinsider.in/after-the-walmart-acquisition-heres-whats-in-store-from-flipkart/articleshow/64111313.cms">acquired</a> the Indian e-commerce retailer recently for $16 billion, stated the nature of the claim while announcing his abrupt resignation. But, according to a Reuters report, the alleged misconduct involved a <a href="https://www.livemint.com/Companies/R6p0OpEeDj0p9JWNl4JjsJ/Claim-against-Flipkarts-Binny-Bansal-was-of-sexual-assault.html">sexual harassment</a> complaint dating back a few years. Although, the investigation by the company into the matter did not corroborate the allegations, ‘It did reveal other lapses in judgement, particularly a lack of transparency, related to how Binny responded to the situation’ said a<a href="https://stories.flipkart.com/flipkart-walmart-binny-bansal/"> joint statement </a>by Walmart-Flipkart. According to a Bloomberg <a href="https://www.ndtv.com/business/consensual-affair-found-probe-against-flipkarts-binny-bansal-report-1947020">report</a> which cited people familiar with the matter, the investigation found Bansal had a ‘consensual affair’ with the complainant. “These have been challenging times for my family and me. I am concerned that this may become a distraction for the company and the team. In light of these circumstances, I feel it is best to step away as chairman and group CEO,” Bansal reportedly <a href="https://timesofindia.indiatimes.com/business/india-business/stunned-by-allegations-challenging-time-for-my-family-and-me-binny-bansal/articleshow/66607778.cms">said</a> in his letter to Flipkart employees. That being said, Bansal also conveyed that he will continue to hold his shares in Flipkart. Tiger Global executive, Kalyan Krishnamurthy, will continue as the CEO of Flipkart, which operates as a separate entity within the Flipkart Group. Krishnamurthy will also oversee the group’s online fashion portals Myntra and Jabong. Flipkart, founded by Binny Bansal and <keyword id="225032" type="PERSON" weightage="20" keywordseo="Sachin-Bansal">Sachin Bansal</keyword> in 2007, has been one of the most sought after and watched startup success stories in India. Sachin Bansal also <a href="https://www.businessinsider.in/how-flipkart-went-from-being-an-online-bookseller-to-indias-biggest-e-commerce-story/articleshow/64100266.cms">parted ways</a> with Flipkart earlier this year when Walmart bought 77% stake in the company. SEE ALSO : <a href="https://www.businessinsider.in/flipkart-group-ceo-binny-bansal-steps-down-following-allegations-of-serious-personal-misconduct/articleshow/66608441.cms">Flipkart Group CEO Binny Bansal steps down following allegations of ‘serious personal misconduct’</a> <a href="https://www.businessinsider.in/amazon-flipkart-asked-to-pull-fake-beauty-products-from-websites-in-india-report/articleshow/66589577.cms">Amazon, Flipkart asked to pull fake beauty products from websites in India: Report</a> <a href="https://www.businessinsider.in/slideshows/miscellaneous/walmart-has-apparently-been-worried-about-amazon-for-more-than-15-years-here-are-all-of-the-changes-it-has-made-to-keep-up-in-the-online-shopping-battle/In-May-Walmart-invested-16-billion-to-become-the-majority-owner-of-Flipkart-Indias-top-e-commerce-retailer-further-expanding-its-reach-internationally-/slideshow/66597493.cms">Walmart has apparently been worried about Amazon for more than 15 years - here are all of the changes it has made to keep up in the online-shopping battle</a>

‘Allegations left me stunned’: Flipkart’s Binny Bansal resigns denying claims of ‘personal misconduct’

<ul><li><keyword id="225032" type="PERSON" weightage="20" keywordseo="Sachin-Bansal">Sachin Bansal</keyword>, <keyword id="6354742" type="PERSON" weightage="20" keywordseo="Flipkart">Flipkart</keyword>’s Founder, is expected to sell all his shares. </li><li><keyword id="80487" type="ORGANIZATION" weightage="100" keywordseo="walmart">Walmart</keyword> will get 60% of the acquisition. </li><li>The remaining 15% will go to <keyword id="6357623" type="ORGANIZATION" weightage="20" keywordseo="alphabet">Alphabet</keyword>, Google’s parent company. </li></ul> One of the largest acquisitions involving an Indian company might be finalised as soon as <a href="https://www.moneycontrol.com/news/business/walmart-to-likely-announce-flipkart-deal-this-week-may-acquire-70-75-stake-2564503.html">tomorrow</a>. American multinational retail corporation Walmart has been in the process of acquiring Flipkart, India’s second largest e-commerce portal, for a while and it seems the deal may finally be made official tomorrow. <a href="https://www.businessinsider.in/Sudden-dust-storms-in-northern-India-have-killed-over-120-people/articleshow/64027810.cms">Reports</a> last week indicated that Flipkart’s board approved the deal for Walmart to acquire 75% of the company. Keep in mind that Walmart isn’t alone in this venture. While the company will get around 60% stake in Flipkart, Google’s parent company, Alphabet, will get the other 15%. Overall, this is expected to be a $3 billion dollar expense between the two. Walmart is expected to get three seats on Flipkart’s board of directors. The company will also have a say in the how Flipkart handles it’s financial and legal matters, a source told <a href="https://www.ndtv.com/india-news/walmart-likely-to-announce-flipkart-deal-by-this-week-report-1848670">NDTV</a>. Winds of change Sachin Bansal, Flipkart’s founder, is set to leave the company altogether. As per reports, Flipkart’s co-founder will sell his 5.5% stake in the company to Walmart, resulting in around $1 billion. Sources revealed to <a href="https://timesofindia.indiatimes.com/people/sachin-bansal-to-sell-entire-5-5-to-walmart-as-he-exits-flipkart/articleshow/64073757.cms">Times of India</a>, that Bansal “wasn’t aligned with the strategy and operating structure that was being proposed post Walmart coming on board.” This isn’t entirely new information since rumours of his departure have been circling for a while. After Walmart’s acquisition comes through, <keyword id="6364080" type="PERSON" weightage="20" keywordseo="binny-bansal">Binny Bansal</keyword> will stay on as the group CEO and also be given the title of executive chairman. Kalyan Krishnamurthy, Flipkart’s current CEO, will also stay with the company but won’t have a seat on the board. Sachin Bansal won’t be the only one leaving. <keyword id="163404" type="ORGANIZATION" weightage="20" keywordseo="Softbank">SoftBank</keyword>, currently Flipkart’s largest investor, is rumoured to want to back out as well, that too completely. Even Tiger Global and Accel, two other investors, maybe looking to sell a majority of their stakes.

Walmart might announce acquisition of Indian e-commerce giant tomorrow

<ul><li><keyword id="18635" type="CITY" weightage="20" keywordseo="Amazon">Amazon</keyword> wants to buy a 60% stake in <keyword id="3658" type="COUNTRY" weightage="20" keywordseo="India">India</keyword>’s <keyword id="6354742" type="COMPANY" weightage="20" keywordseo="Flipkart">Flipkart</keyword>. </li><li>Amazon’s bid may complicate matters for <keyword id="80487" type="COMPANY" weightage="20" keywordseo="walmart">Walmart</keyword>, which has also been trying to buy a stake in Flipkart. </li><li>Flipkart had refused another offer from Amazon two years ago.</li></ul>Amazon has reportedly made a formal offer to to <a href="https://www.reuters.com/article/us-flipkart-m-a-amazon-com/amazon-offers-to-buy-60-percent-stake-in-indias-flipkart-cnbc-tv18-idUSKBN1I30WA">buy a 60% stake in Indian e-commerce firm Flipkart</a>. The offer could complicate matters for Walmart, which has also been trying to buy a majority stake in the company. Flipkart is Amazon's primary competitor in the country. Earlier, sources told Reuters that Walmart may be able to strike the deal soon and was en route to spending $10-12 billion by the end of June for that. According to CNBC-TV18's report, Amazon has offered a breakup fee worth $2 billion to Flipkart. If successful, the deal would be the biggest Amazon has made in India so far. However, reports say that Flipkart had refused another offer made by Amazon two years ago. The company was trying to buy 51-55% of Flipkart at the time. While it is unclear how much Amazon's current bid is worth, it is expected to be on par with what Walmart is paying. Walmart had entered India back in 2007, through a joint venture with Bharti Enterprises. That's before Amazon made its entry into this market, Walmart's deal with Bharti was called off in 2013 when Amazon was well established in India. However, Walmart still owns 21 wholesale cash-and-carry supermarkets in India right now. Amazon, on the other hand, has been making waves in the country's <keyword id="35621" type="PERSON" weightage="20" keywordseo="e-commerce">e-commerce</keyword> space, earning a significant market share.

You Searched For "Walmart Flipkart" and got 13 results

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

Carla Mozée

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

Sanchita Dash

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

Emily Graffeo

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

Jacob Sonenshine

Flipkart’s IPO in the US could see Walmart exit, Binny Bansal has already begun cashing himself out

Sanchita Dash

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

Dilsher Dhillon

Walmart could be neglecting a key business by purchasing Flipkart

Jacob Sonenshine

Indian unicorn Flipkart's board approves $15 billion deal with Walmart

Prabhjote Gill

Walmart's next acquisition could be a bust - at least in the near-term, analyst says

Jacob Sonenshine

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

PTI

‘Allegations left me stunned’: Flipkart’s Binny Bansal resigns denying claims of ‘personal misconduct’

BI India Bureau

Walmart might announce acquisition of Indian e-commerce giant tomorrow

Prabhjote Gill

Amazon just made a formal offer to buy 60% of its chief competitor in India

Prasid Banerjee

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