Indian e–commerce industry is valued at USD 38. 5 billion in 2017 and is expected to grow to USD 200 billion by the year 2026. Major reason behind huge upsurge in the industry valuation is the rise in use of smart phones and higher penetration of internet.
Ongoing movement of digitisation is expected to increase the total internet user base to 829 million by 2021 making it 59% of the total population. With such huge economy and much higher potential growth, who will not want to eat a share of this profit? Everyone, because everyone wants money and everyone wants the share of profit.
Flipkart is one of the biggest e commerce firms operating in the land of India and giving tiff competition to one of the largest e-commerce firm in the world, AMAZON.COM.
If news is to be believed, Flipkart is in talking terms with Wal-Mart the US based retail giants to join hand in India, to maintain their supremacy in the market.
If talks go well with Walmart, then US based retail giant is expected to buy 40% stake in Flipkart. If the deal between Walmart and Flikart crosses the road smoothly then it will end up valuing the Indian e- commerce giant at $21 billion. In the year 2017, Flipkart received commitment from Japan’s Soft bank group to invest $1.4 billion, tking the valuation of the firm to $14billionTiger Global Management, Accel Partners, Naspers, IDG Ventures and some other investors of Flipkart are expected to sell their stake, in Flipkart-Walmart deal.
As per a research online retail store founded by former employees of Amazon, Sachin Bansal and Binny Bansal controlled approximately 40% of the online market, much ahead of Amazon.
Amazon is definitely not taking the deals lightly as it also trying to get it hands on Flipkart and market is expected Amazon to extend its hand to Flipkart with an offer to buy some stake in the retail giant.
Amazon already has plans to invest $5billion to expand its online grocery stores. If Amazon fails to get its hand in Flipkart and Walmart becomes the stake holder of Flipkart, then world largest e-retail store will face stiff competition and will definitely see some tough time in the Asia’s third largest economy, India.
Time will decide, whether it will be Flipkart-Amazon or Flipkart- Wal-Mart, so it`s time to wait and watch which side weighs more.
Note: All information & data provided in this article is for the educational purpose as well as to give general information on the finance & economy, not to provide any professional advice or service. Views & opinions are not biased against the company and do not affect any official policy or any other agency, an organization within the content.