mercredi 28 septembre 2016

Walmart May Invest $1B In Flipkart To Fight Amazon Overseas

Walmart’s apparent plan to become more like Amazon wasn’t realized when the company launched its $50/year Prime-rival Shipping Pass or after the company snatched up e-commerce site Jet.com for $3.3 billion. But not one to give up, the big box retailer is now reportedly in talks to invest more than $1 billion in fellow Amazon competitor Flipkart. 

If the hefty investment becomes a reality, Walmart would become a minority stakeholder in India-based Flipkart, Bloomberg reports, citing the all-powerful “person familiar with the matter.”

Flipkart, which is the largest online retailer in India, would gain additional capital to stave off Amazon’s growing presence in the country.

Analysts tell Bloomberg that if the deal goes through, the competitive intensity between Flipkart and Amazon would increase significantly.

“With its main competitor Amazon getting very aggressive, Flipkart needs a solid partner to bolster its operations with not just capital but also branding, logistics, sourcing and other retail experience, they won’t be able to pull it off with small partners,” Devangshu Dutta, chief executive officer for retail consultancy Third Eyesight, tells Bloomberg.

The deal could also prove helpful for Walmart, which stands to increase its exposure in India.

Spokespeople for both Walmart and Flipkart did not provide comment on the possible deal.

Wal-Mart in Talks to Invest Up to $1 Billion in Flipkart [Bloomberg]



Aucun commentaire:

Enregistrer un commentaire