Amazon May Start Bidding War with Walmart to Buy Flipkart
Amazon had earlier held discussions with the Indian e-market giant to buy a stake but recent newspaper reports from unidentified sources reveal otherwise.
According to reports, Flipkart is also in talks with Walmart for a majority stake sale that will be valued around $21 billion.
Recent reports by the Kotak Institutional Equities stated that there is huge potential for the e-commerce market in India and the country is seen only second to U.S. and china. Reports indicate that the online market business will reach around $28 billion by the year 2020.
With the online markets luring global giants like Amazon and Walmart the battle of e-commerce has further intensified in India.
However, either Amazon or Flipkart did not respond to any requests for comments from the press. However, big time players with India’s largest online player including Accel Partners, tiger Global Management, and, Naspers and IDG Ventures are among the companies that will be selling much or all of their shares as part of the buyout.
As Flipkart is already in talks with Walmart, the online retailer seems not so keen on Amazon’s offer. Walmart is planning to buy 55 per cent of Flipkart as part of its share purchases. It looks like the deal with Walmart is more likely to succeed.
Last year, Japanese tech giant SoftBank has invested some $100 billion as part of its primary and secondary capital making it one of the largest shareholders in Flipkart.
Launched in 2007, Flipkart is seen as one of the best assets in the global e-commerce market.