Son confirmed that the agreement between Walmart and Flipkart was made Tuesday night Japan Time.
Masayoshi Son, CEO of Japanese firm SoftBank, has confirmed that Walmart has acquired a majority stake in Flipkart.
The Walmart-Flipkart deal was sealed on Tuesday night, Japan Time, Son was quoted by Reuters in a conference call after SoftBank reported earnings. He added that SoftBank's investment in the Indian online marketplace had almost doubled.
SoftBank is the largest investor in Flipkart and holds about 20 percent stake in the e-tailer. Moneycontrol had reported earlier that SoftBank, which owns 20.8 percent stake in the company will exit completely. The Masayoshi Son-controlled Japanese company will make a neat profit by selling its stake in Flipkart, with its investment of USD 2.5 billion set to fetch about USD 4 billion, a gain of 60 percent.
Flipkart and Walmart are yet to make a formal announcement, though sources told Moneycontrol that it could be out within hours.
Moneycontrol had reported earlier that Walmart has signed a definitive agreement to acquire about 75% of online retailer Flipkart.
According to India Brand Equity Foundation, a government-supported research agency, the Indian e-commerce market is expected to reach USD 64 billion by 2020 and USD 200 billion by 2026 from USD 38.5 billion as of 2017.
With growing internet penetration, internet users in India are expected to increase from 481 million as of December 2017 to 829 million by 2021.
This will be Walmart’s second coming of sorts for India’s retail market. In 2013, it pulled out of its wholesale joint venture with Bharti Group.
Gartner's Research Director, Adrian Lee, said in a statement, "Expect the status quo to remain within the year after the Flipkart-Walmart deal is completed. This is an extension of Walmart’s global expansion strategy. This should not be observed without mention to Alibaba Group’s intent to become the third player in India.”To be updated.Are you happy with your current monthly income? Do you know you can double it without working extra hours or asking for a raise? Rahul Shah, one of the India's leading expert on wealth building, has created a strategy which makes it possible... in just a short few years. You can know his secrets in his FREE video series airing between 12th to 17th December. You can reserve your free seat here.