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Journalism of Courage
The fine print of the $16-billion Walmart-Flipkart deal leaves a scope for additional investors being roped in that could result in Walmart’s stake being reduced from the proposed 77 per cent. It is learnt that Google’s parent Alphabet Inc is one of those in talks with Walmart to pick around 15 per cent stake in Flipkart for around $3 billion.
“Walmart and Flipkart are also in discussions with additional potential investors who may join the round, which could result in Walmart’s investment stake moving lower after the transaction is complete. Even so, the company would retain clear majority ownership,” Walmart said.
Read | Walmart-Flipkart deal to face scrutiny from income tax dept
Alphabet’s arrival could mean additional strength in terms of data analytics, market intelligence along with the tech prowess that Google has built over the years for Flipkart to leverage in its battle with Amazon. Google has built a large database through its India projects, including Google Ads.
Read | It’s a salute to the success of Indian start-up: ASSOCHAM on Walmart-Flipkart deal
Last August, Walmart partnered with Google to offer products for order via Google Assistant. This enabled Walmart to deliver shopping recommendations based on customers’ previous purchases.
