See More on Facebook

Economics, News

Walmart, Flipkart seal world’s biggest e-commerce deal

Flipkart was launched in 2007 in the southern Indian city of Bengaluru by Sachin Bansal and Binny Bansal, both former Amazon employees.


Written by

Updated: May 9, 2018

It’s official. The world’s biggest e-commerce deal has been signed. American retail giant Walmart Inc. will pay US$16 billion for a 77% stake in India’s largest start-up Flipkart.

Valuing the firm at about US$21 billion, the deal which takes Walmart’s battle with rival Amazon to another level, was made public on May 9.

The buyout, said to be the biggest e-commerce acquisition globally, marks the end of an era. Flipkart co-founder and chairman Sachin Bansal – who scripted the biggest start-up success story – will leave the company.

Initially they sold books then branched out to retail music, movies, games, electronics and mobiles.

“India is one of the most attractive retail markets in the world, given its size and growth rate, and our investment is an opportunity to partner with the company that is leading transformation of e-commerce in the market,” Walmart chief executive officer Doug McMillon said in a statement.

Amazon eventually wants Flipkart to become a publicly-listed subsidiary. The retailer said it expects India’s e-commerce market to grow at four times the rate of the overall retail industry.

Over a 100 million Indians have signed up on Flipkart. With a population of 1.3 billion, India is seeing rapid growth in its digital economy with the emergence of e-commerce start-ups

When the Bansals started out the going was not as smooth as internet penetration was low and a flourishing e-commerce business was still a distant dream.

Indian e-commerce industry has since grown steadily – US$30 billion in size – and analysts expect this to shoot up to US$200 billion by 2026.

However, the biggest Merger and Acquisition in the country – Asia’s third-largest economy – is the yet-to-be-completed merger of Vodafone India and Idea Cellular to create India’s largest telecom operator, surpassing Bharti Airtel. That deal, at US$23 billion, PTI reported.



Enjoyed this story? Share it.


Lamat R Hasan
About the Author: Lamat is an Associate Editor at Asia News Network.

Eastern Briefings

All you need to know about Asia


Our Eastern Briefings Newsletter presents curated stories from 22 Asian newspapers from South, Southeast and Northeast Asia.

Sign up and stay updated with the latest news.



By providing us with your email address, you agree to our Privacy Policy and Terms of Service.

View Today's Newsletter Here

Economics, News

Cooperating on energy in face of tariffs

At Houston oil and gas industry forum, US, China executives discuss future. The US energy industry expects a strong long-term energy relationship with China, a US energy official told US and Chinese oil and gas executives the day after China announced a retaliatory 10 per cent tariff on US natural gas. Steve Winberg, US Energy Department assistant secretary for fossil energy, on Wednesday assured the energy executives that the US has never revoked a liquefied natural gas (LNG) export authorization, nor plans to do so. “Some potential exporters and financiers have expressed concern that the US may rescind or revoke LNG export authorization. Let me be very clear that these concerns are unfounded,” Winberg said on Wednesday at the opening of the two-day 18th US-China Oil and Gas Industry Forum in Houston. The forum has been a collaboration of the US Energy Department, Ch


By Cod Satrusayang
September 25, 2018

Economics, News

Swift assistance needed to rehabilitate Hokkaido’s quake-stricken industries

To realize Hokkaido’s post-quake rehabilitation, it is indispensable to rebuild its industries. A half month has passed since the Hokkaido earthquake, which registered the highest level on the Japanese seismic intensity scale of 7. A power blackout that spread to all parts of the prefecture has been resolved. The No. 1 unit at the Tomato-Atsuma thermal power plant — a facility that plays a central role in the supply of electricity there — has been brought back on line. The government has withdrawn its request for power-saving, and neon lighting has returned to flourishing areas in Sapporo. However, scars from the earthquake have not yet healed. Even if the amount of direct damage, including that caused to roads, rivers and forest land, is calculated alone, the figure exceeds ¥150 billion. There are still many disaster victims in evacuation centers. T


By The Japan News
September 25, 2018

Economics, News

Disruption seen from auto parts duty in US-China trade war

US tariffs on Chinese auto parts will probably result in higher prices and could disrupt the global automotive supply chain industry. The Trump administration has imposed a new 10 percent tariff on $200 billion worth of Chinese goods that takes effect on Sept 24. Beginning on Jan 1, the tariffs will increase to 25 percent. China retaliated with $60 billion of new tariffs on US products. The new levies target more than 100 automotive products including engines, gaskets, rubber seals, tires and transmission shafts. Tariffs are basically taxes on the consumer, and all costs increases within the supply chain will eventually be passed along to the consumer, according to Peter Nagle, senior automotive analyst at IHS Markit. “In the short-term, suppliers might absorb some of the cost of the tariff but eventually they will have to raise prices or resource product from elsewhere, which also will rai


By China Daily
September 24, 2018

Economics, News

India launches world’s biggest healthcare programme

Prime Minister Narendra Modi launched India’s ambitious healthcare program on Sunday. Deemed the “world’s largest government-funded healthcare programme”, the scheme will cover half a billion people through its network of hospitals and support services. Speaking at the event, the PM said that the number of beneficiaries is equivalent to the total population of the United States, Canada and Mexico or the entire European Union. “This is a major step taken to fulfil the vision of providing better healthcare facilities to the poorest of the poor and to those standing last in the queue,” the PM said. Following the launch, the PM informed the gathering that the scheme covers diseases such as cancer, heart diseases, kidney and liver problems, diabetes and over 1300 various ailments. “The treatment of the diseases can not only be done in government hospitals but also private hospitals,” said


By Cod Satrusayang
September 24, 2018

Economics, News

US exempts Korean steel from import tariff

The move is seen as a positive signal for the local steel industry. Steel products made by South Korea’s SL Tech has been excluded from the US’ steel tariffs, marking the first case of exemption since the US imposed a quota on Korean steel shipments this May, industry sources said Thursday. The US Commerce Department earlier this week accepted US medical device manufacturer Micro Stamping’s request for a tariff exemption on ultrafine steel tubes imported from Korean steel company SL Tech. Micro Stamping uses ultrafine steel tubes made by SL Tech to produce medical equipment. Korean steelmakers viewed the decision as a positive sign of a higher possibility of tariff exemptions, while remaining cautious over whether the same decision would be applied to steel products used for construction and household appliances.


By The Korea Herald
September 21, 2018

Economics, News

China hits back with tariffs on US$60b of US goods in trade war

China has hit back with reciprocal tariffs after President Trump imposed tariffs on over $200 billion of Chinese goods. China will impose tariffs on US$60 billion (S$82.3 billion) worth of US goods as retaliati


By The Straits Times
September 19, 2018