Retail

Amazon likely to submit an offer to buy Flipkart

Updated : April 04, 2018 10:40 AM IST

Flipkart controls nearly 40% of India’s online retail, ahead of Amazon.

It was founded by former Amazon employees Sachin Bansal and Binny Bansal in 2007.

Amazon.com Inc may submit an offer to buy Indian e-commerce firm Flipkart, which is currently in talks with Walmart Inc for a stake sale, local daily Mint reported, citing sources.

A deal with Walmart is more likely to go through, according to people with knowledge of the matter, the report added. Amazon declined to comment while Flipkart did not immediately respond to a request seeking comment.

Walmart is in talks to buy a stake of over 40 percent in Flipkart, a direct challenge to Amazon in Asia’s third-largest economy. The U.S. retailer will buy a majority stake through a mix of primary and secondary share purchases in a deal that could value Flipkart at $21 billion, the Mint report said.

The deal with Walmart is expected to aid Flipkart in its fight against Amazon, which has committed to investing $5 billion in India as it expands aggressively, including into online grocery deliveries, which analysts tip as the next big battleground for the country’s e-commerce sector.

Flipkart, founded by former Amazon employees Sachin Bansal and Binny Bansal in 2007, controls nearly 40% of India’s online retail, ahead of Amazon, according to estimates by research firm Forrester.

Amazon likely to submit an offer to buy Flipkart

You May Also Like

Coronavirus News December 1 Highlights: DRL starts Sputnik V vaccine trials; Lewis Hamilton tests positive

GST collections continue to be above Rs 1 lakh crore mark for second straight month

Closing Bell: Market ends at record high, over 1% higher; Nifty settles above 13,000

Trending on CNBC-TV18

recommended for you