Our very own homegrown e-commerce giant Flipkart now has been acquired by the American retail giant Walmart for a whopping 16 billion dollars.Now let us understand the history of Flipkart and how Flipkart became a multi billion dollar company
Flipkart was started by two IIT delhi friends sachin bansal and binny bansal who happend to share the same sirname worked for the American online giant amazon , they decided to start selling online products just like amazon in India and launched flipkart.com in India in 2007, hence they both invested their money in this and started off.Initially the company started selling books , so as they continued they were doing good , and since it was a startup and it didn’t have enough money to grow their business, they started getting funding from topmost companies around the world
SoftBank invested 2.5 billion dollars and microsoft became shareholders in flipkart and microsoft even gave their servers to flipkart and thus Flipkart got a lot of funding
Now Walmart is a a company worth more than 500 billion dollars, and it is a huge offline retail market in USA , now the question is why did Walmart buy Flipkart for a whooping 16 billion dollars
The answer is they want to expand their bussiness globally and want to sit on top of their game and have a overall grasp around the world through their market , now Walmart was a offline market and it wanted to enter the online retail world , so back in the US Amazon has established itself as a gamechanger in the online e-commerce industry and also expanded their bussiness in India, and since Amazon is so huge in the states walmart couldn’t enter the online e-commerce industry and they started looking for alternative options tonexpand their business
In doing so they came across india, in india though amazon has become popular and earning well it ia still behind flipkart , Flipkart has established themselves as the top e-commerce industry in india and were leading
Since there was a business battle between amazon and walmart to come on top, walmart saw this opportunity in india to overcome amazon , so they were seeking this opportunity to biy flipkart in india and establish their threshold and threshold by becoming number one in india and therefore they did the exact thing and bought Flipkart for 16 billion dollars for a 77 percent share in the company
Flipkart also owned the online fashion store myntra and another e-commerce online store snapdeal, so even thia went to Walmart as a bonus
In the future we can see battle of online e-commerce giants in india while they make their efforts to come on top of their business by giving more and more discounts to the consumer, their battle will only help.the indian consumers who will be favoured by all the discounts and offers they have to offer