Several key shareholders in India’s largest online retailer Flipkart have reportedly agreed to sell their stakes to Walmart but the biggest of them, Japan’s SoftBank, which holds 20 per cent stake, is seeking a better price. Flipkart founders Sachin Bansal and Binny Bansal may sell part of their stake as well, according to officials privy to the development.
Walmart has reached an agreement on buying the stakes of New York-based investment firm Tiger Global Management, South African media conglomerate Naspers, venture capital firm Accel and China’s Tencent Holdings, several Indian business dailies reported quoting anonymous sources.Several key shareholders in India's largest online retailer Flipkart have reportedly agreed to sell their stakes to Walmart but the biggest of them, Japan's SoftBank, which holds 20 per cent stake, is seeking a better price. Flipkart founders Sachin Bansal and Binny Bansal may sell part of their stake as well, according to officials privy to the development.#
These six shareholders collectively hold more than 55 per cent of Flipkart.
SoftBank had invested $2.5 billion in Flipkart in August last year and has reportedly remained relatively cold to overtures by Walmart, which is said to have offered a $10-12 billion valuation to purchase the shares held by the Tokyo-headquartered investor, said the people cited above.
Discussions with SoftBank are still under way. Apart from buying shares from current investors, Walmart is also likely to infuse fresh capital into Flipkart.
Amazon is also reported to be in talks with several of Flipkart’s shareholders.
A digital news platform reported that eBay, which has a stake in Flipkart, had also not agreed to a deal with Walmart because of its commercial agreements with the Indian platform. (DS)
Fibre2Fashion News Desk – India
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