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“WALMART” MAY TAKE “FLIPKART” PUBLIC IN 4 YEARS “DEAL BREED NEW GENERATION ENTREPRENEURS” “NEW DISRUPTIVE BUSINESS MODELS MAY ENTER E-MARKET”

 
 
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“WALMART” MAY TAKE “FLIPKART” PUBLIC IN 4 YEARS “DEAL BREED NEW GENERATION ENTREPRENEURS” “NEW DISRUPTIVE BUSINESS MODELS MAY ENTER E-MARKET”
by System Administrator - Sunday, 13 May 2018, 7:13 PM
 

By: M.S.Yatnatti: Editor and Video Journalist Bengaluru: US retailer Walmart has the option to get additional $3 billion investments into Flipkart within a year of completing about $16 billion deal and may get India's largest online retailer listed in as early as four years, as per a regulatory filing.Walmart, in a US Securities and Exchange Commission (SEC) filing, gave details of its agreement to take about 77% stake in Flipkart through infusing $2 billion cash in the company and buying some of Flipkart investors' stake for $14 billion. Internet has penetrated in India very fast. Data charges are most affordable. Era of disruptions or get disrupted. E Commerce is evolving in India. Era of disruptions or get disrupted started . It is evident that the Walmart- Flipkart deal will re-energize the startup ecosystem in India even as global investors will likely gain confidence after seeing the first such liquidity event take place locally. Investors who have ploughed billions of dollars in local startups, especially post 2014, but haven't witnessed many exits, will now want to take new bets, several local startups are reportedly coming with new disrrutive business models whvh will take on Amazon and Wallmart in E-Commerce Platform . Elaborating on what the Walmart partnership offers Flipkart, reportedly Binny said the company will take more long term decisions that weren't possible to take as a VC-driven company. Flipkart will make more and bigger acquisitions in future, especially those that add to the capabilities that the company wants to build to grow. Kalyan Krishnamurthy, CEO ofFlipkart, said the company will look to correct the 'bias' in the ecommerce growth in India which has been primarily driven by electronics and fashion. He expects groceries and furniture to be among the new growth drivers for Flipkart. Binny emphasised the importance of the Walmart deal for India's startup ecosystem. "It's a huge win for the ecosystem. Flipkart had the best of VCs and private equity; now we have the best partner. The deal will act like a flywheel for the country's startup environment,” he said.