New Delhi, February 16: Online shopping has now become a trend and also a mode of ease because you can get everything online at your doorstep. Even the online companies have a good competition amongst themselves. So to give a fight to the rivals they use tactics. Walmart Inc is in talks to purchase a stake of more than 40 percent in Indian e-commerce firm Flipkart, a direct challenge to Amazon.com Inc in Asia’s third-largest economy.
The U.S. retailer is looking at buying new and existing shares in Flipkart and due diligence is likely to begin as early as next week, the sources said. They declined to be named as the talks were private.
Existing investors in Flipkart also include U.S. hedge fund Tiger Global Management, China’s Tencent Holdings Ltd, online marketplace eBay Inc and software giant Microsoft Corp.
Recently we saw that one of leading online shopping company Amazon has injected a fresh capital of 1960 crores to fight against its rival, Flipkart. Amazon had put in Rs 8,150 crore alone in 2017-18 and the latest round is the fourth infusion since July last year. The last such infusion was in November 2017 when the US parent site put in Rs 2,900 crore, its single-biggest capital infusion into the Indian market. This will help the company to maintain its leading position in the online market.
Both Flipkart and Amazon are expected to battle it out in the grocery segment this year and take on Big Basket where Alibaba and Paytm Mall are set to invest.