In what is likely to be a boost in its battle with Amazon, Flipkart and retail major Walmart are said to be in talks about a potential deal. The reported deal will see Walmart buy a minority stake in Flipkart, and this is likely to be finalized by March this year. Update: A Flipkart spokesperson responded to BGR India’s query saying, “As a company policy, we do not comment on rumours or speculations.” Also Read - iPhone 11, iPhone XR up for grab with massive discount on Flipkart Big Saving Days saleAlso Read - Flipkart Big Saving Days sale begins: Pixel 4a, Realme X7, Samsung Galaxy F62, more on discount
According to ET, Walmart is looking at buying 15-20 percent stake in Flipkart. The deal may involve primary and secondary sales by some of Flipkart s long-standing investors. The publication adds that Walmart executives including CEO Doug McMillon, Walmart e-commerce CEO Marc Lore and current COO Judith McKenna visited Flipkart offices last week. Also Read - Redmi Note 10S with Rs 1,000 discount on Amazon sale: Check offer details, new price
This isn t the first time both the companies are reported to have been in talks around a potential deal. About two years back, there were reports about Walmart looking to invest between $750 million and $1 billion in Flipkart.
A deal would no doubt be beneficial for both companies. Flipkart will get access to Walmart s expertise and technology in the grocery sector. Incidentally, the Indian government allows 100 percent foreign direct investment (FDI) in this sector both online and offline. Walmart, on the other hand, will be able to leverage Flipkart s ready made marketplace database.