Home » Money

Hundreds of Flipkart employees to turn dollar millionaires overnight after Walmart acquisition

11 May, 2018, 04:48 | Author: Sara Gill
  • Walmart store. Credit Diego M. Radzinschi ALM

Stocks of brick-and-mortar retail players rallied on Thursday, following the world's largest retailer Walmart picking up majority stake in India's e-commerce giant Flipkart.

Accel said that Flipkart's success was mostly due to the company building its own delivery network and pioneering cash-on-delivery models.

U.S. retail behemoth Walmart CEO Doug McMillon on Thursday said that it saw "no trouble" in getting regulatory approval from CCI to buy 77 per cent stake in Flipkart.

Since then, Climan and Moore have worked closely on a number of large deals, including advising Marvell Technology Group Ltd. on its pending $6 billion buy of Cavium Inc. and Synopsys Inc. on its $565 million acquisition of Black Duck Software Inc. J.P. Morgan Securities LLC is acting as the lead financial advisor for Walmart, along with Barclays, with Hogan Lovells, Shardul Amarchand Mangaldas & Co. and Gibson, Dunn & Crutcher LLP as outside counsel to Walmart.

The remainder will be held by existing shareholders, including Flipkart co-founder Binny Bansal, China's Tencent Holdings, Tiger Global Management and Microsoft, the company said. The apparel segment has the second highest share of 31 per cent in the e-commerce retail industry.

The deal presents India as an attractive investment destination and proves the maturity and viability of the start-ups and e-commerce sector of India, said Lalit Bhasin, senior vice president of Indo-American Chamber of Commerce (IACC).


In terms of the company structure, there won't be many changes. Accel put $8 lakh into the company in 2008, the first major check that Flipkar would receive. While such investments have enabled Flipkart to expand its business and boost revenues, the company lost $1.3 billion during its fiscal year 2017.

McMillon added, "As a company, we are transforming globally to meet and exceed the needs of customers and we look forward to working with Flipkart to grow in this critical market. While eCommerce is still a relatively small part of retail in India, we see great potential to grow".

"Therefore, being the controller of the company, Walmart may use the data and other information as per its will and wish and the possibility of compromising the data cannot be ruled out", he said, according to the statement. Flipkart has 34 percent market share while Amazon controls 27 percent of India's online sales, as per PTI.

"We all know that they have interests in the multi-brand retail of food and a combination of both will kill the interests of farmers", he said.

"I'll be watching and cheering from the outside - Flipsters, you better continue to do a good job!" he said.

Flipkart, which began its journey from a 2BHK apartment in Bengaluru's Koramangala in 2007, went on inspiring millions of youths across the country who had a dream of becoming an entrepreneur post their college days.

Recommended:



Popular

Malaysia's Mahathir claims election win over ruling coalition
Najib said the campaign was "quite vicious in the content of the personal attacks which doesn't reflect a mature democracy". "We want a party for all races", said Agnes Yap, a bank employee, after she voted in a Kuala Lumpur suburb.

Russian oligarch questioned about payments to Trump's lawyer
The documents claimed Cohen received the money "within approximately 75 days" of the payment he made to the adult actress. Cohen's lawyers have fought in court to restrict prosectors' access to the material seized in those raids.

Barcelona Met Griezmann's Agent In October, Confirms Bartomeu
Gil Marin also suggested he may take action over the perceived "inappropriate" approach. Griezmann has a £88m (€100m) release clause in his contract at the Wanda Metropolitano.

Violence Disrupts APC Ward Congress In Oyo, Imo
Rotimi Chibuike Amaechi said; he said he would not support Senator Magnus Abe's governorship ambition", Finebone stressed. Reacting, the State Publicity Secretary of the APC , Mr.

Southwest airlines plane makes emergency landing at DFW Airport
The incident first came to light after a passenger on the aircraft tweeted about the incident upon arrival. Riordan was nearly sucked out of the window, but was saved by her co-passengers.

Wenger in demand as he prepares for life after Arsenal
What will I do? I don't know why."The recovery will be full because the advantage of surgery is that it heals the inflammation". Wenger said the 32-year-old was "devastated" by the injury.

Gina Haspel is too qualified to pass up
He also said the American people would get a chance to hear from her directly at her confirmation hearing on Wednesday. Sanders told reporters Monday Haspel is "100%" committed to seeing her confirmation process through.

Blanchett thinks #MeToo will take time to bring change in Hollywood
Cannes blocked Netflix from attending, by mandating that all films in competition must have theatrical distribution in France. Fremaux asserted that the festival is doing its best to improve the gender ratio in its selections and committees.

Opposition leader Nikol Pashinyan elected PM of Armenia
Pashinyan also promised that there would be no persecution in the country for political and economic reasons. Pashinian has vowed to have good relations with both Russian Federation and the West.

Gmail for iPhone updated with Snooze Feature and Ability to Send Money
Since it's context-aware, if it's Friday you'll get " Have a great weekend! " as a suggested closing phrase. After the new Gmail is active, go back to Settings - General - and scroll down to " Experimental Access ".