Walmart Inc. and Flipkart Group today announced that the acquisition process has now been completed, made Walmart the largest shareholder in the Flipkart Group. Walmart had announced in May that it is acquiring 77% stake in Flipkart for $16 billion.
Flipkart’s existing management will continue to lead the business. Tencent Holdings Ltd. and Tiger Global Management LLC will remain represented on the Flipkart board, in addition to independent board members, and will be joined by new members from Walmart. Flipkart’s financials will be reported as part of Walmart’s International business segment.
With the completion of the investment, Walmart now holds approximately 77 percent of Flipkart. The remainder of the business is held by other shareholders, including Flipkart co-founder Binny Bansal, Tencent, Tiger Global and Microsoft Corp.
Walmart’s investment includes $2 billion of new equity funding to help accelerate the growth of the Flipkart business. Both companies will retain their unique brands and operating structures in India.
Judith McKenna, president, and CEO of Walmart International said:
Walmart and Flipkart will achieve more together than each of us could accomplish separately to contribute to the economic growth of India, creating a strong local business powered by Walmart. Our investment will benefit India by providing quality, affordable goods for customers while creating new skilled jobs and opportunities for suppliers. As a company, we are transforming globally to make life even easier for customers, and we are delighted to learn from, contribute to and work with Flipkart to grow in India, one of the fastest-growing and most attractive retail markets in world.
Binny Bansal, Flipkart’s co-founder, and group chief executive officer said:
We are poised and ready to deliver the full value of this partnership for India. By combining Walmart’s omnichannel retail expertise, supply-chain knowledge and financial strength with Flipkart’s talent, technology and local insights, we are confident that together we can drive the next wave of retail in India.