Macro Moves

Flipkart Walmart Deal: Walmart India acquired by Flipkart

Created on 28 Jul 2020

Wraps up in 3 Min

Read by 5.9k people

Updated on 08 Sep 2020

There is something called 'Fad.' This is a shorter version or rather the shortest version of fashion. Actually, fashion stays relatively longer than a fad. This is similar to 'getting viral,' which is becoming quite a thing these days. You would have noticed that all the stuff that gets viral stays only till the next thing gets viral. The fact of the matter is that fads stay for a short duration, but till the time they stay, people are just crazy about them. One such fad is e-commerce. You may remember that all the companies were trying to get into e-commerce, and it is still said to be the next big thing. But, looks like now the fad has changed to offline retail!

We are not at all saying that e-commerce has lost its glamour. We're just saying that now the fad is getting into offline retail, and there's a reason why we're saying this. You might have heard of the latest news about Flipkart acquiring a 100% stake in Walmart India. This acquisition is hinting towards the focus, shifting from e-commerce to offline retail. Just in case you are thinking, how can a single incident reckon such a huge strategic shift? You are missing out on a few important cues that we are going to tell you.

What's Behind Flipkart Acquiring Walmart India?

Walmart India used to operate 'Best Price' stores across 28 locations in the country that have now been acquired by Flipkart. The Best Price stores followed wholesale cash and carry model. Now, post the acquisition, Flipkart is about to launch 'Flipkart Wholesale, ' which is going to be a new digital marketplace. With this, Flipkart is targeting small businesses and MSMEs in India via the extension of its logistical, technological, and financial capabilities.

Let us also tell you that Walmart India was suffering losses from quite some time. With this acquisition, Walmart has tried exploring synergy with Flipkart, in which it holds a close to 77% stake. Confused? Let's give you a simpler explanation. Walmart International holds a majority stake in Flipkart. But, that doesn't give Walmart the power to control entire decision making. In short, Walmart International is different, and it is just an investor in Flipkart. Hence, Flipkart decided to acquire Walmart India (completely) and gain the upper hand in the grocery business that is already getting competitive.

Coming back to where we started from, the fad of offline retailing is gaining life. You see, Reliance Industries Limited is in talks with Future Retail to acquire the 'Big Bazar' stores. Amazon is interested in buying a stake in Reliance Retails and now Flipkart acquiring Walmart India. All these hints towards the fact that offline retail is probably going to boom in the near future. However, will Flipkart experience growth in leaps and bounds with its recent move? We'll have to wait and watch.

5 Reasons: Why You Should Start Investing?

Who said we hate exercising? To be honest, we love it. And we had to do it anyway. If not, then tell me why we run, walk, and hunt for money. But what if I say you can make money sleeping. You can just relax and still make money. All you have to do is start investing. Investing gets us in the next fastest flight towards victory.

What is investing?

In short, investing is the act of allocating funds into various financial assets to put your money to work and earn from the resultant income generated. Ideally, this can act as a secondary or, in some cases, primary income stream and help you fulfill your financial goals. We mostly view only the handful of drawbacks that exist. And eventually, hold a blind eye towards the tons of benefits it brings along. Let's not do that anymore. It's time to explore the opportunities the world of investing has in-store for you. To start off with, let's uncover the distinction between saving and investing.

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Deb P Samaddar

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If people could be named after idioms, Deb would be called "I'm all ears." His brain is a storehouse, ever overflowing with derelict information. So, while most things he talks about are as useless as occasion-less greeting cards, everything he writes has the potential of bagging you multiple diplomas!

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