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A day after Flipkart sold its 77% stake to Walmart for $16 billion, its Chief Executive Officer, Kalyan Krishnamurthy, in a late night email informed sellers from around the country that there was not going to be any change in the operating process of the company, post this development, reports Moneycontrol.
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Krishnamurthy wrote to sellers that Flipkart will keep making deep investments in technology, innovation, supply chain and business processes to grow the e-commerce market even more in coming years, with the aim to increase the number of people shopping online, and the average spends.
He also clarified that Flipkart and Walmart will maintain distinct brands and operating structures post this investment.
The online report says Moneycontrol has seen the email.
He added, "This is a landmark partnership made possible by years of hard work and collaboration among all stakeholders of the e-commerce ecosystem, including our sellers. So, I wanted to write to you personally to celebrate the news, fill you in on what this investment means, and whether there are going to be any changes in your relationship with Flipkart."
Krishnamurthy reassured the sellers in his email that company's focus on making sellers succeed will continue with the same vigour as in recent years.
"As you know, Flipkart has constantly optimised operations and passed on the benefits resulting from such efficiencies to sellers, thus, empowering them to deliver an even more fulfilling experience to customers. With Walmart on board, we are committed to doing more of the same," he said.
The deal will help the US retail giant -- which has seen consumers migrate to online platforms like those run by Amazon -- get a vantage position in e-commerce space in the world's fastest growing economy which has a huge untapped but rapidly growing market.
The deal would bring over 175 million users to Walmart, which has been eyeing the Indian market for a few years. So far it had been handicapped by India's retail policy that does not allow overseas companies to sell directly to consumers (except in wholesale cash-and-carry segment).
First Published: May 10, 2018 1:55 PM IST