Search Results for:Saritha Rai
The outlook for Indian online retailer Flipkart was decidedly gloomy when Kalyan Krishnamurthy became chief executive officer in January 2017. The startup’s valuation was dropping, fundraising was more difficult and Amazon.com Inc. was pledging $5 billion-plus to siphon away customers.
The deal should give Flipkart’s Sachin and Binny Bansal a fortune of about $1 billion, although that status may be short-lived as the pair may have to pay 20% capital gains tax on any shares they sell in the company.
“I think we announced it last night,” he said, during an investor call after his own company’s earnings. “If not, well then that means I’m just spouting this out. In any case, it’s been decided.”
SoftBank will sell all of the 20-plus percent stake it holds in Flipkart at a valuation of roughly $20 billion.
Ola aims to build out an existing pilot project in the central Indian city of Nagpur, where its first electric vehicles have already travelled more than 4 million kilometres.
Walmart faces fewer regulatory hurdles because it has no online retail presence in the country now, while Amazon is the second-largest e-commerce player and Flipkart’s primary rival.
In India where groceries account for half of the almost $1-trillion retail market, Bigbasket is using knowledge learned the hard way during the dotcom era.
If completed, the deal may push the valuation of the homegrown startup to about $20 billion, up from about $12 billion last year.
At stake is an Indian digital payments market that Credit Suisse Group AG estimates could be worth $1 trillion within five years.
Almost five years after opening for business there, Amazon is spending billions fighting a ground war with local rivals like Flipkart that know the terrain.