US-based retail corporation Wal-Mart Stores Inc has commenced its plans to join hands with Flipkart India by buying a minority stake in the latter. This could possibly be to take on their common rival Amazon.
A source familiar with the matter stated that Wal-Mart was looking to invest $750 million in Flipkart; however, the size of the stake and value would eventually depend on the conclusion of talks about the e-tailer’s overall valuation. Furthermore, the two companies are also looking into a collaboration.
Both Wal-Mart and Flipkart, however, declined to comment regarding their possible collaboration to bring down their US rival Amazon which have been expanding their brand name rather rapidly in the retail market of India. Amazon India is now Flipkart’s biggest threat since it’s target market is only india as it only operates in India. Flipkart, valued at about $15 billion earlier this year, reduced private funding and elusive profitability is putting pressure on e-commerce players in India.