By Shahien Nasiripour
Investors controlling as little as 14% of Flipkart can ask Walmart to take the Indian company public in as soon as four years.
The world’s biggest retailer led a group that bought a 77 percent stake in Flipkart Online Services Pvt. in a deal valuing the Indian company at about $21 billion.
Flipkart will look at more buys but they will be heavily capability driven, says Flipkart co-founder and group CEO Binny Bansal.
Grab is likely to launch its electronic wallet GrabPay in Vietnam by September this year as part of its plans to roll out payment services across Southeast Asia by the end of this year.
Once it sells its stake in Flipkart, eBay plans to relaunch its services in India, focusing initially on cross-border trade opportunities.
The move would provide the fund’s investors significant exposure to the ride-sharing industry, which is being shaken up by consolidation in which SoftBank is playing a role.
Deal includes $2 billion of funding from new equity in Flipkart, which could be sold to additional investors in the future.
“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.”
Walmart will buy roughly 70% of Flipkart; it will invest $2b in fresh capital & buy rest from existing Flipkart investors
Narayanan is bullish about maintaining its high growth rate and is investing in new spaces such as personal care, home, jewellery and wearable technology.