Flipkart's chief executive officer Kalyan Krishnamurthy has reached out to sellers on its platform and sought to reassure that there will be no changes in the operating processes of the Bengaluru-based firm as a result of the $16-billion deal struck with USA retail giant Walmart.
Flipkart is leading in the fashion segment through the acquisition of Myntra, Jabong and eBay (Indian wing), the online fashion portals.
Walmart said it expected the deal to knock about 25-30 cents off its earnings in fiscal 2019, assuming the deal closes at the end of the second quarter. The deal to acquire Flipkart is proof that the world has moved on and Indian policy can not keep pace.
Siddheswar Panda, who runs an online printing services frim, Print View, said: "As a part of start-up ecosystem, I feel happy about the Flipkart-Walmart deal as it will inspire many young entrepreneurs across the country".
Bengaluru-based Flipkart has up to now been the world's third-most funded private company and has raised over $7 billion (roughly Rs. 47,000 crores) from investors including SoftBank, DST Global and Tiger Global.
On taxation, Walmart CEO said the company is working with all of the investors to ensure they are more compliant.
Founded in 2007, Flipkart has led India's eCommerce revolution.
Flipkart sells consumer goods ranging from soaps to smartphones and clothes, and gives Walmart access to an e-commerce market that could be worth $200 billion a year within a decade, according to Morgan Stanley.
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With its investment in Flipkart, Walmart will be able to penetrate the Indian online retail market, in a country where it would've struggled to open its own e-commerce business, given that India doesn't permit foreign investment in online retailing, says Mihir Sharma.
Singapore's Allen & Gledhill, Dentons Rodyk & Davidson (an affiliate of Dentons in Singapore) and India's Khaitan & Co and Cyril Amarchand Mangaldas are also advising Flipkart on its deal with Walmart. We are also excited to be doing this with Tencent, Tiger Global and Microsoft, which will be key strategic and technology partners.
"It's capital intensive business that needs deep pockets which Walmart has", she tweeted. "He urged Flipkart team to continue with the momentum, Sachin said, ".But I'll be watching and cheering from the outside?
Flipkart, which is now a manpower driven company, will hopefully become tech-driven with Walmart's entry.
Post-acquisition, both the partners will leverage their strengths but will maintain their distinct brands and operating structures.
It said it is common knowledge that Walmart sources its products from worldwide markets.
"We chose to start the company together". The deal also calls for Walmart to invest $2 billion in equity funding into Flipkart. "But, perhaps, a more fulfilling legacy will be that Sachin was instrumental in bringing a smile on the faces of millions of people every time they saw a Flipkart wishmaster at their doorstep", he adds.
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