The strategic move by Wal-Mart represents a direct challenge to Amazon’s strategy of dominating the e-commerce space in India, Asia’s third largest economy.
As per two sources familiar with the matter at hand, Wal-Mart Inc is in talks to purchase a stake of more than 40% in Flipkart, an Indian e-commerce firm.
The potential deal marks a direct challenge by Flipkart and Wal-Mart to Amazon.com Inc’s dominance in Asia’s third largest economy.
In what could potentially be one of Wal-Mart’s biggest overseas deal, the world’s largest brick-and mortar retailer, is looking to buy new and existing shares in Flipkart after completing due diligence, as early as next week, said the sources on the condition of anonymity.
Although the terms of the discussions were not immediately known, Flipkart’s valuation touched more than $12 billion when SoftBank Group Corp’s Vision Fund took a one fifth stake in the company in 2017 for $2.5 billion, said sources.
Existing investors in Flipkart include China’s Tencent Holdings Ltd, U.S. hedge fund Tiger Global Management, Microsoft Corp, and eBay Inc.
Flipkart’s spokesman said the company does not comment on rumors or speculation.
Wal-Mart’s India-based representative declined to comment.