Walmart makes $15B bid to compete with Amazon in India

The country is viewed by both companies as a major market for international growth

TRD WEEKEND EDITION /
May.May 06, 2018 02:53 PM

(Credit from back: Mike Mozart/Jeepers Media; Wikimedia Commons)

India is the most recent site of Walmart’s proxy war with Amazon.

Walmart’s $15 billion bid to buy a 75 percent ownership stake in the Indian e-commerce platform, Flipkart, which was founded by two former Amazon employees, is an attempt to compete with online retail giant as it continues expanding in the market, reports the Wall Street Journal.

Why India? The country’s retail market is worth about $800 billion in sales and is expected to grow to $1 trillion over the next two years, however most retailers are mom-and-pop shops, which leaves foreign companies one primary opening to break into the market: e-commerce.

Amazon launched its local operations in 2013 and the Indian market has since become a large part of its international retail business with analysts estimating it will boost retail revenue by 30 percent in three years.

Walmart, however, launched brick-and-mortar stores in the country back in 2009 and hasn’t experienced the same growth in large part due to local regulations for foreign-owned physical stores and the company’s slow start when it came to setting up e-commerce capabilities.

Flipkart has received backing from SoftBank Group, Tencent Holdings and Microsoft, and inside sources reported on Friday that its board had approved the deal with Walmart. The move comes after Walmart’s recent sale of its UK grocery chain Asda for about $4 billion despite paying nearly $11 billion for the retailer in 1999. [WSJ]Erin Hudson


Related Articles

arrow_forward_ios
Eric Gordon

Eric Gordon on the evolution of the residential data game — and how to stay competitive in the new world

Big Tech locations in NYC

MAP: Here’s a look at all the Big Tech locations in NYC

What will proptech look like in 2019 and beyond?

What will proptech look like in 2019 and beyond?

Bed Bath & Beyond CEO Mark Tritton (Credit: Getty Images, Mike Mozart via Flickr)

Bed Bath & Beyond to invest $1B in store upgrades and buybacks

It’s a good time to be an industrial broker. Just ask them. (Credit: iStock)

Why all the kids suddenly want to become industrial brokers

A photo illustration of Michael Gianaris and Jeff Bezos (Credit: Getty Images, Wikipedia, iStock)

Gianaris wants to reform NYC tax credit programs that drew Amazon

(Illustration by Neil Webb)

One year later, Amazon Effect still felt in LIC, citywide

From left: Amy Brandt and Dennis Gilmore

First American to buy Docutech for $350M

arrow_forward_ios
Loading...