India’s retail market could face a major sudden disruption soon if Walmart close a big deal with e-commerce giant Flipkart. According to Bloomberg, Walmart hopes to acquire a controlling stake in Flipkart for $12 billion or more and announce the deal agreement in as many as two weeks.
Beside Walmart, its global rival Amazon has reportedly offered a breakup fee of around $1 Bn to $2 Bn to Flipkart to gain a majority stake in it.
According to a report by Live Mint, Flipkart is keeping Amazon as an alternative buyer in case the proposed sale to Walmart falls through.
Now, in a latest development it is being reported that Google too is keen to invest in Flipkart.
Citing an investment banker tracking the Flipkart deal, the report said that Flipkart founders - Sachin Bansal and Binny Bansal, have been in talks with several players for some time for a possible sale or to take a controlling stake. Little wonder that there could be a dark horse in the midst. However it is to be noted that both the founders are former executives at Amazon, which can give a slight advantage to Amazon.
“Though consumers tend to search on Google, the purchase decision most likely ends up in Amazon. This is something that the search engine firm is looking to curb. A stake in Flipkart could help it gain considerably in the Indian market,” said the Business Line report citing its sources.
Consumers are now bypassing Google search and looking for products directly on e-commerce apps such as Amazon, Flipkart or Myntra, among others. Google is looking at ways to bring users back to its platform.
Flipkart as an e-commerce entity in India, has managed to corner nearly 40% of the domestic e-commerce market. Additionally, Indian retailers have delivered higher returns on an absolute basis than global retailers over the last five years. It is a market that is too tempting to ignore making global player like Google to not give up.
The Indian e-commerce market is expected to grow from $38.5 billion as of 2017 to $188 billion by 2025, and is expected to surpass the US to become the second largest e-commerce market in the world by 2034. Further, according to a report by Redseer, e-commerce industry of India is estimated to grow at 60 percent to about $28.5 billion in terms of gross merchandise value (GMV) in 2018
To recall, in August 2017, Flipkart went global when it decided to make the products on its platform available to shoppers in as many as 200 countries all around the globe through its partnership with global ecommerce biggie eBay.
Mentioning the ongoing market competition between Google and Amazon, sources said these two Internet companies are eager to take out market share in the India growth story.
Beside Walmart, its global rival Amazon has reportedly offered a breakup fee of around $1 Bn to $2 Bn to Flipkart to gain a majority stake in it.
According to a report by Live Mint, Flipkart is keeping Amazon as an alternative buyer in case the proposed sale to Walmart falls through.
Now, in a latest development it is being reported that Google too is keen to invest in Flipkart.
Citing an investment banker tracking the Flipkart deal, the report said that Flipkart founders - Sachin Bansal and Binny Bansal, have been in talks with several players for some time for a possible sale or to take a controlling stake. Little wonder that there could be a dark horse in the midst. However it is to be noted that both the founders are former executives at Amazon, which can give a slight advantage to Amazon.
“Though consumers tend to search on Google, the purchase decision most likely ends up in Amazon. This is something that the search engine firm is looking to curb. A stake in Flipkart could help it gain considerably in the Indian market,” said the Business Line report citing its sources.
Consumers are now bypassing Google search and looking for products directly on e-commerce apps such as Amazon, Flipkart or Myntra, among others. Google is looking at ways to bring users back to its platform.
Flipkart as an e-commerce entity in India, has managed to corner nearly 40% of the domestic e-commerce market. Additionally, Indian retailers have delivered higher returns on an absolute basis than global retailers over the last five years. It is a market that is too tempting to ignore making global player like Google to not give up.
The Indian e-commerce market is expected to grow from $38.5 billion as of 2017 to $188 billion by 2025, and is expected to surpass the US to become the second largest e-commerce market in the world by 2034. Further, according to a report by Redseer, e-commerce industry of India is estimated to grow at 60 percent to about $28.5 billion in terms of gross merchandise value (GMV) in 2018
To recall, in August 2017, Flipkart went global when it decided to make the products on its platform available to shoppers in as many as 200 countries all around the globe through its partnership with global ecommerce biggie eBay.
Mentioning the ongoing market competition between Google and Amazon, sources said these two Internet companies are eager to take out market share in the India growth story.
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