Amazon.com Inc may make a rival offer to buy e-commerce firm Flipkart +, which is in tie-up talks with Walmart Inc, media reported, as the two US retail giants elbow for dominance in India’s deafening online industry.
Amazon held near the beginning exploratory talks in order to buy control of Indian rival Flipkart but a deal with Walmart is more likely to happen, a newspaper report stated that the citing people with knowledge of the matter anyhow.
One person familiar with the matter told Reuters that the deal will perhaps go with the Amazon that was low and that any such deal can spark monopoly concerns as Flipkart and Amazon dominate India’s e-commerce market.
The Amazon declined to comment regarding this issue that the time this was contacted by Reuters. Flipkart and Walmart did not respond to requests even for the comment anyway.
Walmart is now all set to buy over 40 percent of Flipkart in potentially one of its biggest overseas deals; Reuters reported the same in the last month.
A deal Can BE gives the world’s largest brick-and-mortar seller access to an e-commerce market that Morgan Stanley approximates and estimated to be worth $200 billion in a decade’s time.
The deal can be also representing a direct challenge to Amazon in Asia’s third-largest economy. Amazon has committed to investing $5 billion in India which can go further into online grocery delivery.
Walmart can perhaps buy a majority stake in Flipkart from beginning to end a mix of primary and secondary share purchases which can be in the deal that can value the Indian firm at $21 billion, the newspaper reported further.
Flipkart was founded by former Amazon employees Sachin Bansal and Binny Bansal in 2007, which gearstick nearly 40 percent of India’s online retail market, which goes further than the Amazon, that display the estimates by researcher Forrester.
Like Amazon founder Jeff Bezos, the pair began by selling books and diversifies rapidly, which is consisting of selling smartphones via exclusive flash sales. Flipkart now competes with Amazon in almost all product categories also.
Flipkart’s success has caught a plenty of the eyeballs a bevy of deep-pocketed and tech-savvy investors which is consists of the US hedge fund Tiger Global Management LLC, online marketplace eBay Inc and software maker Microsoft Corp, as well as Chinese technology firm Tencent Holdings Ltd.
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