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<ul><li><keyword id="80487" type="ORGANIZATION" weightage="100" keywordseo="walmart">Walmart</keyword>'s will potentially be bidding to acquire more than 51% stake in <keyword id="6354742" type="PERSON" weightage="20" keywordseo="Flipkart">Flipkart</keyword> by investing up to $8-10 billion. </li><li>Other major investors include <keyword id="163404" type="ORGANIZATION" weightage="20" keywordseo="Softbank">SoftBank</keyword> (23% stake), Tiger Global (20% stake) and <keyword id="6356837" type="ORGANIZATION" weightage="20" keywordseo="naspers">Naspers</keyword> (16.6% stake).</li><li>SoftBank is willing to pump in an additional $3-4 billion, if Flipkart opts to pursue <keyword id="18635" type="LOCATION" weightage="100" keywordseo="Amazon">Amazon</keyword>'s offer instead of Walmart.</li></ul> Despite Amazon’s bid to buy a 60% stake in India’s Flipkart, reports say the deal will go in Walmart’s favour. Talks of Walmart wanting to acquire a massive stake of Flipkart have been on since February. And with that news, a number of companies, including Google and Amazon, seem to want a piece of Flipkart’s pie. The Bentonville-based retail giant, Walmart, has been itching to expand its online presence into the remaining Asian markets. If this deal materialises -- its biggest e-commerce bet anywhere globally -- will also trigger a re-rating of its stock market valuation, which is currently second only to Amazon. A source told <keyword id="6356641" type="ORGANIZATION" weightage="20" keywordseo="Times-of-India">Times of India</keyword> (TOI) that “the shareholding agreement with Walmart is still to be signed. But it is unlikely that Amazon will come in now. Walmart and Flipkart are agreeing on the deal terms, for now.” Sources with knowledge of the proceedings told <a href="https://timesofindia.indiatimes.com/companies/walmart-nears-flipkart-deal-amazon-push-fails/articleshow/64010460.cms?from=mdr" data-type="tilCustomLink">TOI</a> that SoftBank has been favouring the merger with Amazon instead of Walmart. For this, it is also willing to pump in an additional $3-4 billion, in case Flipkart opts to pursue Amazon's offer instead of Walmart. While most other investors are keen on Walmart’s cashout deal, SoftBank, wants to maintain its 20% stake in the combined <keyword id="6412936" type="ORGANIZATION" weightage="20" keywordseo="flipkart-amazon">Flipkart-Amazon</keyword> entity. The additional amount can in-turn be deployed to buy shares from smaller investors. Flipkart has been valued at around $20 billion and its major investors include SoftBank (23% stake), Tiger Global (20% stake), Naspers (16.6% stake) and <keyword id="144381" type="ORGANIZATION" weightage="20" keywordseo="Accel-Partners">Accel Partners</keyword> (one of the early investors in Flipkart that hold less than 10% stake). However, this idea does not fly with the other major investors who believe -- and perhaps rightly so -- that the potential merger with Amazon would not go past the Competition Commission of India (CCI). The CCI, founded in 2003, is a statutory body responsible for enforcing The Competition Act, 2002 which aims at preventing activities that have a significantly adverse effect on competition in India. Plus, the merger with Amazon would potentially irk the different sections of the trading community. However, SoftBank maintains, Flipkart and Amazon combined will only manage a mere 1.5% stake in the broader Indian retailing industry and therefore is unlikely to run into regulatory hurdles. The Japanese company’s founder and chairman Masayoshi Son saw the potential merger between the two e-commerce behemoths as a way to get his company a bigger play in India’s promising e-commerce market. Just last year, it invested an additional $2.5 billion in Flipkart. According to a <a href="https://timesofindia.indiatimes.com/companies/softbank-likely-to-part-sell-flipkart-stake-to-walmart/articleshow/63291759.cms" data-type="tilCustomLink">Times of India article</a> from 14 March, Walmart's potential bid to acquire more than 51% stake by investing up to $8-10 billion in Flipkart may just nudge SoftBank to part-sell its shares. However, Masayoshi Son told TOI a few days ago, “We are involved in discussions with key shareholders and the management. Either way, we are happy. It is nice to have good offers and we are always open to discussing different options and are always flexible for a good return and success of the company.” All this aside, another source said that the Flipkart board already agreed to Walmart’s offer a few days ago, thereby possibly thwarting Amazon’s intention to sweep in and win the game.

Walmart may edge out Amazon in the race to buy holding stake in India’s Flipkart

In the latest development, <keyword id="541988" type="COMPANY" weightage="100" keywordseo="SnapDeal">Snapdeal</keyword> may merge with <keyword id="761157" type="ORGANIZATION" weightage="100" keywordseo="Infibeam">Infibeam</keyword>, which is India’s only publicly listed e-commerce company. As per various reports, Infibeam is in talks with Snapdeal for possible merger talks and has even put a term sheet that may value Snapdeal at $1 billion. If this deal goes through, Infibeam and Snapdeal together will create a company valued at $2 billion. Ahmedabad-based Infibeam has a market capitalisation of Rs 6,100 crore. The development comes after Snapdeal rejected a $700-750 million offer for sale to <keyword id="6354742" type="COMPANY" weightage="100" keywordseo="Flipkart">Flipkart</keyword>. However, PTI reports Flipkart may make a new offer of $900-950 million. "While Infibeam has a focus on business-to-business commerce, Snapdeal's is a consumer-led online retail platform which is why this merger may bring in synergies in their operations. While Infibeam has given a term sheet, it's not the end of the road for Flipkart," ET quoted sources as saying.

After Snapdeal rejects Flipkart’s offer, it may merge with Infibeam and form a $2 billion company

<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

<keyword id="6354742" type="COMPANY" weightage="100" keywordseo="Flipkart">Flipkart</keyword> has completed the process of acquiring the Indian arm of <keyword id="6357395" type="CITY" weightage="20" keywordseo="eBay">eBay</keyword> and now eBay.in will be a Flipkart Group company. Flipkart announced it will buy eBay.in in April this year when it raised $ 1.4 billion from global technology majors eBay, Tencent and Microsoft. In exchange of an equity stake in Flipkart, eBay had made a cash investment of $500 million and sold its eBay.in business to Flipkart. "Effective immediately, Flipkart will own and operate eBay.in, which will remain an independent entity as part of Flipkart," Flipkart said in a statement. "As a result, Flipkart customers will get expanded product choices with the wide array of global inventory available on eBay while eBay customers will have access to a more unique Indian inventory from Flipkart sellers," the statement said. "Our coming together directly benefits Indian customers and sellers for whom we want to provide the best possible e- commerce experience. This is a step in that direction," Flipkart CEO <keyword id="6379357" type="UNKNOWN" weightage="20" keywordseo="Kalyan-Krishnamurthy">Kalyan Krishnamurthy</keyword> said.

Flipkart acquires eBay India; all formalities completed

<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

Is <keyword id="2364818" type="UNKNOWN" weightage="100" keywordseo="E-commerce-3-0">e-commerce 3.0</keyword> only about business tweaks? Almost all experts will tell you that the new format of <keyword id="35621" type="UNKNOWN" weightage="100" keywordseo="e-commerce">e-commerce</keyword> is on its way, but nobody is quite sure what it is like. Some pinpoint it as online shopping, largely influenced by social media parameters, while others are betting big on the mobile impact. No doubt these are crucial indicators, but they only provide you a partial glimpse into the business-to-consumer (B2C) part of it. However, we need to take a more incisive look at the fast-evolving strategic context of e-commerce, which is throwing up some surprising trends that may affect the industry in the long run. Let us take a look at the recent happenings in the Indian e-commerce space to identify the most prominent trends and what they signify. 
	 
	 
	 
	1. Calibrated aggression for survival: That’s exactly what the much-anticipated cash-and-stock deal between <keyword id="6354742" type="COMPANY" weightage="100" keywordseo="Flipkart">Flipkart</keyword> and <keyword id="319719" type="COMPANY" weightage="100" keywordseo="Myntra">Myntra</keyword> has taught us. Competition has been ironed out by strategic <keyword id="42411" type="UNKNOWN" weightage="100" keywordseo="Merger">merger</keyword> in order to survive against global giants like <keyword id="18635" type="CITY" weightage="100" keywordseo="Amazon">Amazon</keyword>. Flipkart is not new to the game but co-founders Sachin and <keyword id="6364080" type="PERSON" weightage="100" keywordseo="Binny-Bansal">Binny Bansal</keyword> have not gone the LetsBuy way this time, for pretty predictable reasons (for your recap, Letsbuy.com was the electronics e-tailer that was acquired by Flipkart in February 2012 and shut down in May that year). 
	 Before the acquisition, the Myntra brand was way ahead of Flipkart as the <keyword id="2364834" type="UNKNOWN" weightage="100" keywordseo="Biggest-India-fashion-e-tailer">biggest India fashion e-tailer</keyword>. While Flipkart required size to survive against the likes of Amazon, the bigger margins enjoyed by fashion e-tailing was an added icing to the cake (after all, fashion is expected to be the largest category in e-commerce over the next five years). So this time around, it was a calibrated aggression on Flipkart’s part and the merger, along with the much-talked-about <keyword id="2364826" type="UNKNOWN" weightage="100" keywordseo="Management-autonomy">management autonomy</keyword> enjoyed by <keyword id="705865" type="PERSON" weightage="100" keywordseo="Mukesh-Bansal">Mukesh Bansal</keyword>’s Myntra, will continue to work for two specific reasons. 
	 One is local competition, not only from <keyword id="6388367" type="COMPANY" weightage="100" keywordseo="Jabong">Jabong</keyword>, which is promoted by Berlin-based <keyword id="1965711" type="COMPANY" weightage="80" keywordseo="Rocket-Internet-GmbH">Rocket Internet GmbH</keyword> (a venture arm of the deep-pocketed Samwer brothers), but also from <keyword id="541988" type="COMPANY" weightage="100" keywordseo="SnapDeal">Snapdeal</keyword>.com, quite a veteran in the marketplace model. It is too early to assume that Jabong has missed the bus in stamping its dominance in the <keyword id="902070" type="UNKNOWN" weightage="100" keywordseo="e-com">e-com</keyword> space and the same applies to Snapdeal, which has recently raised $100 million and could be opting for an IPO in the next 18-24 months. Moreover, if India eases its <keyword id="44528" type="ORGANIZATION" weightage="100" keywordseo="FDI">FDI</keyword> policy further and allows <keyword id="2364830" type="UNKNOWN" weightage="100" keywordseo="Foreign-e-commerce-companies">foreign e-commerce companies</keyword> to sell their products directly to Indian consumers (as of now, only marketplaces are allowed to do this), <keyword id="2364831" type="UNKNOWN" weightage="100" keywordseo="Home-grown-e-commerce-firms">home-grown e-commerce firms</keyword> will require maximum <keyword id="573045" type="UNKNOWN" weightage="100" keywordseo="Customer-loyalty">customer loyalty</keyword> to stay in business and the likes of Myntra will play a key role in ensuring enhanced <keyword id="485911" type="PERSON" weightage="100" keywordseo="brand-loyalty">brand loyalty</keyword>.
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	The way ahead: Similar mergers may happen soon and we may see some monopolistic polarisation in the e-commerce space. If branding and management autonomy can be retained in the same way it had been done in the <keyword id="2196490" type="UNKNOWN" weightage="100" keywordseo="Flipkart-Myntra-deal">Flipkart-Myntra deal</keyword>, a Snapdeal-Jabong deal may very well be a possibility. On the other hand, Amazon may come up with a similar offer for Snapdeal (we don’t rule out <keyword id="161767" type="COMPANY" weightage="100" keywordseo="eBay-India">eBay India</keyword> either) and once again, we may witness the emergence of an e-commerce mega power in India. Also, in most of these deals, unequals could be gunning for merger-of-equals status, thus complicating the merger and acquisition operations. Ultimately, the <keyword id="2364839" type="UNKNOWN" weightage="100" keywordseo="Entry-barrier">entry barrier</keyword> will be too high for small or niche e-commerce sites and staying profitable will become a tough proposition. 
	 
	 
	 
	2. SME focus for marketplace growth: A couple of days ago, Flipkart announced tie-ups with two SME (small and medium enterprise) promotion bodies and signed MoUs with the Federation of Indian Micro and <keyword id="6375845" type="UNKNOWN" weightage="100" keywordseo="Small-and-medium-enterprises">Small and Medium Enterprises</keyword> (<keyword id="174192" type="ORGANIZATION" weightage="100" keywordseo="FISME">FISME</keyword>) and the National Centre for Design and Product Development (<keyword id="2348217" type="UNKNOWN" weightage="100" keywordseo="NCDPD">NCDPD</keyword>). With this move, the Bangalore firm expects to create a powerful affiliation with 50,000 SMEs and artisans by helping them with data analytics, marketing and customer acquisition. The company is also holding talks with several <keyword id="533862" type="UNKNOWN" weightage="100" keywordseo="Manufacturing-clusters">manufacturing clusters</keyword> in Punjab, Uttar Pradesh and Gujarat in a bid to attract more sellers on board and thus ensure strong growth for its marketplace model. 
	 
	As of now, Flipkart has about 3,000 sellers on board, mostly SMEs, and offers 15 million products across 70-plus categories. The company aims to grow the seller base to 12,000 by the end of the current fiscal, according to Economic Times. Myntra, too, has about 100 sellers on board and plans to increase this number to 1,000 by fiscal-end. However, this is too paltry a number, compared to the largest Chinese <keyword id="2049184" type="UNKNOWN" weightage="100" keywordseo="E-commerce-marketplace">e-commerce marketplace</keyword> <keyword id="302749" type="COMPANY" weightage="100" keywordseo="Alibaba">Alibaba</keyword>.com that has about 20 lakh SMEs on board, but has less than 20,000 in India. 
	 As for other key players in India, here are some mindboggling numbers according to media reports. Snapdeal currently features about 500 categories, 100,000 sellers and more than 5 million products (excluding books and movies); eBay has 1.1 million product listings at any given point <keyword id="54921" type="ENTERTAINMENT" weightage="60" keywordseo="spread">spread</keyword> across 2,000 categories and 45,000 sellers on board while Amazon has 15 million products from 5,000 sellers across 24 categories. Amazon has already opened two Fufillment Centers in India, enabling home-grown SMEs to get a scalable and robust national platform. Sellers opting for FBA (<keyword id="2023087" type="UNKNOWN" weightage="100" keywordseo="Fulfillment-by-Amazon">Fulfillment By Amazon</keyword>) send their products to these ‘fulfillment centers’ and once an order is placed, Amazon packs and ships the order.
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	The way ahead: Right now, no one can possibly predict whether the death of the inventory-led e-commerce model is imminent. But one thing is pretty certain – e-commerce businesses need as many products and categories as possible to enhance customer engagement. However, that won’t be possible without growing their marketplaces and bringing on board a huge number of sellers. Hence, the <keyword id="2364811" type="UNKNOWN" weightage="100" keywordseo="SME-focus">SME focus</keyword> and <keyword id="6630005" type="UNKNOWN" weightage="100" keywordseo="private-labels">private labels</keyword> are going to dominate e-commerce 3.0. 
	 
	 
	 
	3. VAS for better customer loyalty: In spite of a Mumbai firm delivering pizza on an experimental basis, civil/commercial drones à la <keyword id="2364850" type="UNKNOWN" weightage="100" keywordseo="Amazon-Prime-Air-drones">Amazon Prime Air drones</keyword> are still not a reality in India (neither they are commercially ready in the US). However, Amazon, eBay, Flipkart and Snapdeal are trying their best to ensure ‘fastest possible’ delivery in the country. While <keyword id="6354743" type="COMPANY" weightage="100" keywordseo="Amazon-India">Amazon India</keyword> offers same-day and guaranteed one-day delivery, eBay is testing a 9-hour delivery model in Mumbai. 
	 Only recently, Flipkart has launched its annual subscription service called <keyword id="2230132" type="UNKNOWN" weightage="100" keywordseo="Flipkart-First">Flipkart First</keyword>, offering a number of benefits including <keyword id="1591575" type="UNKNOWN" weightage="100" keywordseo="free-shipping">free shipping</keyword> for any purchase, free in-a-day guaranteed delivery, <keyword id="2364858" type="UNKNOWN" weightage="100" keywordseo="Discounted-same-day-delivery">discounted same-day delivery</keyword>, 24×7 <keyword id="2364859" type="UNKNOWN" weightage="100" keywordseo="Priority-customer-service">priority customer service</keyword> and more. This is similar to the lucrative logistics part of Amazon’s Prime subscription (currently not available in India), but Amazon offers a bigger service bouquet for its Prime subscribers, including access to songs, movies, TV shows and books. Flipkart, or any other Indian e-tailer for that matter, is yet to launch such extensive customer engagement programme, but the bait has been thrown by Flipkart and to some extent, by Snapdeal, which also offers free same-day delivery in certain regions and hopes to expand this service next year. 
	 
	The way ahead: Some experts feel that e-com businesses will soon curtail services like <keyword id="1972252" type="UNKNOWN" weightage="100" keywordseo="Express-delivery">express delivery</keyword> and free shipping in order to generate more cash. High transportation costs and other logistics issues have been cited as the main culprits. But keeping in mind that <keyword id="758541" type="ORGANIZATION" weightage="100" keywordseo="Amazon-Prime">Amazon Prime</keyword> works more as a <keyword id="1426078" type="UNKNOWN" weightage="100" keywordseo="loyalty-programme">loyalty programme</keyword> and less as a revenue-churner, fixing fickle customer loyalty may lie in developing these services. Now that Flipkart is going to market <keyword id="2364868" type="UNKNOWN" weightage="100" keywordseo="Affordable-tablets">affordable tablets</keyword> under its <keyword id="2338688" type="UNKNOWN" weightage="100" keywordseo="DigiFlip">DigiFlip</keyword> label, the Indian e-commerce giant can very well experiment with some Prime-like services and craft user experience based on ‘All things Flipkart’ just as Amazon does with its affordable <keyword id="785825" type="UNKNOWN" weightage="100" keywordseo="Kindle-Fire">Kindle Fire</keyword>. If that happens and other companies follow suit, e-commerce 3.0 in India will evolve into an inclusive and exciting user experience. For now, let us wait and watch. 
	 
	Images: Thinkstock/Getty Images

Life After
Flipkart-Myntra Deal: Will These 3 Trends Rule E-commerce In India?

<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

Efforts towards <keyword id="541988" type="COMPANY" weightage="20" keywordseo="SnapDeal">Snapdeal</keyword>’s sale to <keyword id="6354742" type="COMPANY" weightage="20" keywordseo="Flipkart">Flipkart</keyword> may hit a dead end after six months of negotiation. The crucial meeting between the two parties to seal deal has been reportedly called off. As per reports, the meeting between Snapdeal and Flipkart, scheduled for Monday and Tuesday, to discuss the merger has been cancelled. The law firms of both the online marketplaces were scheduled to close the transaction. Law firm J Sagar Associates and banker Credit Suisse, which are representing Snapdeal in the negotiations, were to meet Khaitan &amp; Co and Goldman Sachs. "The two co-founders have said they will vote in favour of Snapdeal going forward as a smaller, but independent entity, terming it 'Snapdeal 2.0'," one of the sources told ET. The latest developments come after Snapdeal sold its digital payments platform <keyword id="6377963" type="UNKNOWN" weightage="20" keywordseo="Freecharge">FreeCharge</keyword> to <keyword id="6355975" type="CITY" weightage="20" keywordseo="Axis-Bank">Axis Bank</keyword> for Rs 385 crore.

After 6 months of negotiations, Snapdeal-Flipkart deal may fall apart

<keyword id="541988" type="COMPANY" weightage="100" keywordseo="SnapDeal">Snapdeal</keyword> has found support from its early investors such as <keyword id="175881" type="COMPANY" weightage="20" keywordseo="Nexus-Venture-Partners">Nexus Venture Partners</keyword>, <keyword id="163404" type="COMPANY" weightage="20" keywordseo="Softbank">SoftBank</keyword>, etc, backing its decision to go solo. Snapdeal terminated its merger plans with <keyword id="6354742" type="COMPANY" weightage="20" keywordseo="Flipkart">Flipkart</keyword> and put its foot down to function as an independent entity. Following the decision, Snapdeal’s early investor Nexus Venture Partners said it would "continue to partner with the company, to help achieve its goals". "Nexus, as a long-term Snapdeal shareholder, fully supports the Snapdeal 2.0 journey," said the firm. Nexus holds nearly 10-11% stake in Snapdeal. SoftBank, which was pushing Snapdeal to merge with Flipkart, too, backed Snapdeal's decision to go solo. However, some of the investors were upset over Snapdeal’s decisions, such as <keyword id="1397792" type="UNKNOWN" weightage="20" keywordseo="Kalaari-Capital">Kalaari Capital</keyword>. “I maintain my stand that the decision to terminate the deal was not supported by Kalaari and also reiterate that the deal was called off without prior notice to us," <keyword id="1397790" type="UNKNOWN" weightage="20" keywordseo="Vani-Kola">Vani Kola</keyword>, managing director at Kalaari Capital, said in an email response to ET.

Early investors support Snapdeal’s decision, back it to go independent

The <a href="http://www.businessinsider.in/searchresult.cms?query=merger%26acquisition&amp;sortorder=effectivedate">mergers and acquisitions</a> in startups are going to shoot up in this financial year owing to funding crunch. 
 
Many <a href="http://www.businessinsider.in/searchresult.cms?query=startups&amp;sortorder=effectivedate">startups</a>, especially <a href="http://www.businessinsider.in/searchresult.cms?query=tech+startups&amp;sortorder=effectivedate">tech-based firms</a>, are going to merge with the sharks in the industry and the number is going to break all past records. 
 As per data tracker Venture Intelligence, the mergers and acquisitions in <keyword id="675306" type="UNKNOWN" weightage="20" keywordseo="Tech-startups">tech startups</keyword> more than doubled to 146 transactions in the fiscal year ended March 31from 69 in 2014-15. 
 The <keyword id="407698" type="UNKNOWN" weightage="20" keywordseo="Merger-and-Acquisitions">merger and acquisitions</keyword> are also going to rise as Indian startup giants such <a href="http://www.businessinsider.in/searchresult.cms?query=flipkart&amp;sortorder=effectivedate">Flipkart</a> and <a href="http://www.businessinsider.in/searchresult.cms?query=snapdeal&amp;sortorder=effectivedate">Snapdeal</a> are seeking to make strategic purchases. 
"We definitely expect to see more consolidation this year driven by a few factors-acquisitions that are complementary and synergistic; consolidation to take out competition; consolidation of cap tables; and acqui-hires," Aashish Bhinde, head of digital and technology at Avendus Capital, told ET. 
 
The primary reason behind this is funding crunch. Many startups that started on vision are now aiming to be profit making firms. 
“Overall, in terms of funding, it's going to get worse. Ventures that have raised series-A (funding) rounds are finding it difficult to raise follow-on rounds... There will be stress in terms of companies not having cash flows to sustain themselves,” Siddharth Parekh, senior partner at private equity firm Paragon Partners told ET. 
 
(Image: Thinkstock)

Owing to funding crunch, many startups are going to get swallowed by big fishes this year

<a href="http://www.businessinsider.in/searchresult.cms?query=snapdeal&amp;sortorder=effectivedate" data-type="tilCustomLink">Snapdeal’s</a> three major investors- <a href="http://www.businessinsider.in/searchresult.cms?query=softbank&amp;sortorder=effectivedate" data-type="tilCustomLink">SoftBank</a>, Nexus Venture Partners and Kalaari Capital- have already agreed for e-commerce’s sale out to<a href="http://www.businessinsider.in/searchresult.cms?query=flipkart&amp;sortorder=effectivedate" data-type="tilCustomLink"> Flipkart</a>. But, apart from these, a nod from <keyword id="6419840" type="PERSON" weightage="100" keywordseo="Azim-Premji">Azim Premji</keyword> and <keyword id="6360722" type="PERSON" weightage="20" keywordseo="ratan-tata">Ratan Tata</keyword> is also required as they too have stakes in <keyword id="541988" type="COMPANY" weightage="20" keywordseo="SnapDeal">Snapdeal</keyword>. <a href="https://www.bloomberg.com/news/articles/2017-05-16/flipkart-pact-for-snapdeal-said-to-need-premji-tata-approvals">Bloomberg</a> reported, as per the contract, Snapdeal needs backing from the two of India's most powerful businessmen. Nod from Premji, Tata and other several important investors is still awaited. “If due diligence goes smoothly, a term sheet specifying cash and stock for each shareholder will follow and a final agreement could be signed by mid- to late June,” Bloomberg quoted sources as saying. When the sale happens, Snapdeal's Kunal Bahl and <keyword id="396598" type="PERSON" weightage="20" keywordseo="Rohit-Bansal">Rohit Bansal</keyword> will together receive about $30 million with a similar sum to be set aside for Snapdeal's nearly 2,000 employees. <keyword id="1397792" type="UNKNOWN" weightage="20" keywordseo="Kalaari-Capital">Kalaari Capital</keyword>, one of the two early investors in the startup, is to get $30 million, while Nexus will receive twice that amount for its larger stake, they said. Kalaari's managing director <keyword id="1397790" type="UNKNOWN" weightage="20" keywordseo="Vani-Kola">Vani Kola</keyword>, an early investor in Snapdeal, told Bloomberg that she has resigned from the startup's board. "I was done with what I needed to do,” Kola said, adding that she saw no conflict of interest. Meanwhile, this merger will give a boost to <keyword id="6354742" type="COMPANY" weightage="20" keywordseo="Flipkart">Flipkart</keyword>’s battle against <keyword id="18635" type="CITY" weightage="20" keywordseo="Amazon">Amazon</keyword>, which is pumping in money in its Indian arm to grab a significant share in the market. Flipkart raised $1.4 billion from Tencent Holdings Ltd., Microsoft Corp. and EBay Inc, taking its valuation at $11.6 billion. "This is a landmark deal for Flipkart and for India,” the company's co-founders <keyword id="225032" type="PERSON" weightage="20" keywordseo="Sachin-Bansal">Sachin Bansal</keyword> and <keyword id="6364080" type="PERSON" weightage="20" keywordseo="Binny-Bansal">Binny Bansal</keyword> said in a statement. "This deal reaffirms our resolve to hasten the transformation of commerce in India through technology.

Azim Premji, Ratan Tata’s nod also important for Flipkart-Snapdeal merger

<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.

You Searched For "flipkart mergers" and got 12 results

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After 6 months of negotiations, Snapdeal-Flipkart deal may fall apart

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