Heating up the stakes on the buy-side of the industry with another possible e-commerce brick-and-mortar team up, Walmart is said to be in talks with rising e-commerce operator Flipkart Online Services to invest “several billion dollars.” According to a Fortune report, the retail giant could be in for as much as 20 percent of the India-based company, which would boost Flipkart's valuation as high as $20 billion, up $8 billion from where Fortune said it had been according to researcher CB Insights.
“Walmart will make Flipkart a stronger rival to Amazon,” said Arvind Singhal, Chairman of the New Delhi-based retail consultancy Technopak Advisors. “Strategically, combining forces makes sense for both.”
Though both Flipkart and Walmart did not respond to the news source’s request for comment, the talks are reportedly in the advanced stages.
“Walmart doesn’t have much of a choice in India,” said Singhal. “They either have to go it alone or partner with someone else as Indian e-commerce has the potential to become really big.”
A key move to make, it seems. Projected growth for India's market has raised the attention of forward thinkers such as Amazon’s Founder, Jeff Bezos, who Fortune noted has vowed to spend $5 billion to gain ground in India’s online market.
Amazon itself recently met with the leader of Boxed.com to discuss an acquisition, while Kroger was discussing possible partnerships with Chinese e-commerce giant Alibaba. And in addition, Walmart just announced a partnership with Japan's Rakuten Inc.
Will Walmart and Flipkart close the deal? Deli Market News will continue to report as the story unfolds.