ASUS Zenfone Max Pro to launch on April 23 as Flipkart exclusive

Cornelia Mascio
Aprile 17, 2018

Additionally, sources also said that Amazon, for which India is a critical market, has also thrown its hat into the ring for Flipkart and is believed to be in talks with several of its shareholders, including SoftBank.

The offer of $10-12 Bn valuation by Walmart has received cold shoulder from SoftBank, the sources added. Apart from that, Tiger Global, Naspers, Accel and Tencent have agreed to sell their stakes to Walmart.

Co-founders Sachin Bansal and Binny Bansal are expected to sell a part of their stake. At the time, eBay had taken a 5.44% stake in the business and handed over eBay India operations to Flipkart.

Walmart is ready to pay $10-12 billion for acquiring 51% stake in Flipkart, and this is a big amount - They will seek complete control over all merchandise, and brand names associated with Flipkart. Analysts believed that SoftBank is expected to gain nearly $2 Bn from its last investment in the company if the Walmart deal goes through.

The final contours of the deal are still in the works and what the final shareholding pattern will look like will only be known once its closed.

It is unclear if the Japanese strategic investor will continue talks if Walmart goes on to clinch a deal with the rest of the shareholders, given that the exclusivity period ended a few weeks ago, one of the persons said. There are still three years remaining.

According to the report, its push into e-commerce comes as Amazon has embraced offline retail, with an affiliate of the Seattle-based company picking up a $27.6 million stake in Indian retailer Shopper's Stop Ltd. As such, the partnership between Walmart and Flipkart already seems like a match made in heaven.

"Long-term partnerships have transformed the way India buys mobile phones".

Discussions with SoftBank Going on It had invested $2.5 billion in Flipkart in August past year through its $100 billion Vision Fund, at the time the largest private investment in India's consumer internet sector.

Furthermore, as the daily has previously pointed out, if Walmart succeeds in its negotiations with Flipkart's existing investors, this will be one of the biggest - not to mention pretty rare - exits in the Indian startup ecosystem.

Consider Tiger Global. Back in 2009, it was the second player to bet on Flipkart, ploughing in a whopping $30 million in two tranches. Despite selling shares worth over $500-600 million past year, its remaining stake of around 20 per cent is estimated to be worth around $4 billion now. And, should the Walmart deal crystalise, it will reportedly see the value of its 5-6 per cent stake swell further.

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