Tag: E-commerce

Walmart and Flipkart sign definitive agreement

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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US retail giant Walmart has acquired a 75% stake in Indian e-commerce site Flipkart for about $15 billion on Wednesday, sources told CNBC-TV18.

Walmart’s purchase of a controlling stake in Flipkart includes about $2 billion of fresh equity funding.

Walmart will become the largest stakeholder in Flipkart upon completion of the deal, while SoftBank sold its 20% stake in Flipkart.

With the purchase of Flipkart, Walmart will be able to extend its expertise to managing physical goods in the digital world – a strength that Flipkart lacks.

Masayoshi Son, SoftBank’s chief executive, said the vision fund investment in the Indian e-commerce major doubled in value in more than six months and confirmed that Walmart has formally agreed to buy Flipkart.

Nasper and Accel Partners will also exit Flipkart post the deal, while Tencent, Tiger Global and Binny Bansal would retain a partial stake.

The deal has political backing, and is unlikely to run into regulatory hurdles. The Walmart leadership had met Prime Minister Narendra Modi for a one-on-one meeting in Washington DC in June last year.

A three-way battle between the big boys, Amazon, Walmart through Flipkart, and Alibaba via PaytmMall is expected to ensue, as they vie for dominance over the Indian retail space.

Flipkart will look to leverage Walmart’s retail expertise and its knowledge of the grocery and merchandise supply chain management.

The investment by Walmart will help the Indian company build retail infrastructure especially in rural India, and also set up and agricultural supply chain.

Although Tiger Global would not find itself in a tax net since it was one of the early investors in Flipkart when the laws were not so stringent, other investors like SoftBank, including the founders, will need to pay significant taxes, Greyhound research said.

SoftBank, which has exited Flipkart at a premium, and the Flipkart founders are expected to be liable for a significant tax claim. Walmart, however, is likely to have factored in the tax liability into the deal.

The research firm added the combined entity will have to carefully structure and master issues around transfer pricing, as Walmart’s technology arm was based in an SEZ.

Walmart’s existing Cash and Carry store business in India is also expected to continue as a separate unit, and is not expected to be mixed with the e-commerce business.

The Indian retail market is currently pegged around $650 Billion and with 90% of it being unorganised.

Earlier, Amazon had emerged as a contender for a majority stake in Flipkart, with an ofer to buy a stake of about 60%.

Read our comprehensive coverage on the deal here.

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Walmart-Flipkart: 15 pointers on India’s biggest e-commerce deal

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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US retail giant Walmart is all set to announce the purchase of a controlling stake in Indian e-commerce company Flipkart, in what is expected to be the company’s biggest acquisition to date in the e-commerce space.

Walmart could buy up to a 75% stake in Flipkart for about $15 billion, valuing the Indian e-commerce company at $20 billion.

Walmart is expected to hold a majority stake in the combined entity, but the American retailer and Singapore-based Flipkart are in talks with other potential investors to raise funds.

Sanchit Vir Gogia of Greyhound Research shares 15 key points on the deal, its structure, and its impact.

1. What is the deal size and overall terms? 

   The deal should be in the range of $14.5 – 15.5 Billion (at a valuation of approximately $20 Billion) with Walmart taking equity in the range of 71 – 72%.We expect Alphabet to come in at an additional 10% equity amounting to an investment in the range of $1.5 – 2 Billion.
   
   

2. Will the Founders, Management and Softbank stay put in Flipkart? 

   This deal is more inclined to be a partnership than an acquisition which allows Flipkart to continue operating in a near as-is fashion. This clearly seems to the new working model for Walmart across the globe where it’s more inclined to partnerships rather than its earlier held belief of doing everything on it own.The company has established partnerships in key markets like Japan (Rakuten), China (JD.com), UK (Sainsbury-ASDA), US (Google) among others.While we expect Kalyan to remain at the helm and Binny to likely be the executive chairman; this deal will see Sachin Bansal opt for a final exit.

   Separately, with Softbank, since they came in much later as an investor in Flipkart, it will be in their best interest to exit and ensure minimal tax impact. Of course, they may have to time their exit to minimise this impact.

3. Wouldn’t Amazon acquiring Flipkart make more sense? 

   Actually not. The coming together of Walmart and Flipkart in India is a marriage wherein both parties bring equally to the table. E-commerce share of total retail sales in India is expected to cross 5% by 2020.The duo, Walmart and Flipkart, will not only be able to tap into this 5% but also build on existing network and infrastructure of Kirana stores and other community infrastructure and target the market at large.

   In the case of Amazon, Flipkart and investors would have had to let go of a lot more control and pretty much align the entire company with the Amazon structure and processes. Most importantly, this would have been an eyesore for Competition Commission of India and wouldn’t have gone through at all. Hence, Walmart–Flipkart is a partnership that can be expected to add value to investors and deliver long-term shareholder value.

4. Is Walmart using this deal as a backdoor entry in the Indian retail sector? 

   Walmart (or any other entity of its type) cannot use acquisitions in India as a backdoor to establishing a retail presence in the country.

   The laws of the land are clear and do not allow a company like Walmart that is a multi-brand retailer to own more than 51% via the FDI route.

   We see no reason for a company like Walmart or the like to violate these laws.
   
   

5. Is Walmart going to merge Flipkart’s business with its Cash and Carry business? 

   Walmart’s existing Cash and Carry store business in India can be expected to continue as a separate business unit and not mixed with the eCommerce business.The Indian retail market is currently pegged around $650 Billion and with 90% of it being unorganised.It doesn’t make sense for Walmart to leave such a cash cow where there is hardly any competition and upside is so huge. With this, they can not only continue to serve large Kirana driven traditional market but will also be able to serve the growing B2C consumer market. So best of both the worlds.

6. What synergies do you see between both parties? 

   Walmart is more of a logistics and a supply chain company than being a retailer. At the core of their operations, Walmart has achieved excellence when it comes to moving and managing physical goods across the globe in as many efficient ways as possible.With the proposed acquisition of Flipkart, the company will be able to extend this expertise to managing physical goods in the digital world – a strength that Flipkart lacks.

   To put this in context – supply chain is also the strength of Amazon, Flipkart’s ace competition. This strengthis a significant differentiator in a marketplace dominated by thin margins and worsened by steep discounting policies.

   Having said that, expect enough and more synergies (and investments) to be drawn between the respective businesses in the areas of sourcing and selling of agri-based products, supply chain management, warehousing operations, technology back-end and most importantly using existing network and infrastructure of Kirana stores to reach consumers among other areas.

   What is of particular interest is the opportunity for global Walmart sellers to sell in India via the Flipkart marketplace and the Kirana stores and Flipkart’s private labels to sell via the Walmart global networks.

7. Flipkart has already tried to enter the grocery market so how will this change moving forward? 

   Although Flipkart has made credible attempts, they haven’t been able to scale this business due to the lack of expertise and depth in agri-based products.Walmart, on the other hand, has exceptional understanding and network in this area and we can well expect the combined entity (under Walmart’s guidance) to focus significantly on selling groceries and other agri products via both the Flipkart marketplace and Kirana stores.
   
   

8. How do you expect Kirana stores to benefit from this deal? 

   Walmart brings to the table a deep and solid understanding of using the network of existing retail infrastructure and adding technology to it to offer real-time status on stocks.This understanding will come in handy for Flipkart in its journey of onboarding existing Kirana stores as its feet-on-street to stock and supply products.We expect the combined entity to modernise at least 10 million Kirana stores over the next 3-5 years by way of enabling digital transactions and modernising retail practices at large.

   More specifically, we expect a more significant push for UPI based transactions through PhonePe. This last-mile connectivity via Flipkart for consumers we estimate will enable approximately 100 Billion transactions in the next 3–5 years.

9. Isn’t this deal an anti-thesis to the success and viability of traditional Kirana stores? 

   If we were to draw parallels then we must compare Walmart’s acquisition of Flipkart with the Booker model in the UK. We must not lose sight of the fact that India’s retail sector continues to be unorganised in the tune of 90% and is in a dire need to transform into a model that is both inclusive and efficient.What most Kirana stores need is the scale at the backend supported by best-in-class technology to deliver exceptional experiences.

   The Walmart acquisition of Flipkart proposes much the same, and we believe this is India’s long-awaited chance to transform its retail sector in one-shot. In essence, this has been a partnership waiting to happen.

   Even bodies like Swadeshi Jagran Manch (SJM), The Confederation of All India Traders (CAIT) would be keen on such a change since it will be a win-win for Indian consumers, farmers, Kiranas, and the government.

   Furthermore, detailed discussions with distributors tell us the significant pressures they face in their current business model and their desperation to either transform or shut shop. This alliance (in theory) proposes an efficient and modernised supply chain structure that will not only improve distribution but more importantly create jobs.

   A company of the size of Walmart can be expected to solve the current gaps that consumers in tier 2 and 3 towns of India (including rural India) face while shopping online by way of investment in showcase centres that allow consumers to touch, look and feel products that they may never otherwise buy online. It takes muscle, intent and depths of expertise to create such pools of community infrastructure much needed to expand and grow the Indian retail sector.

10. What challenges do you believe this deal will pose for both parties? 

    While there will be multiple challenges, here are key challenges that the combined entity will face upfront.Current Organisational Structure & Combined Entity Restructuring –
    Currently headquartered in Singapore, Flipkart has more than a handful of investors and more importantly a complex reseller structure that allows the company to be compliant with local laws and yet control majority sales.Three of their highest sellers are their own companies namely Flipkart Smart Buy (they sell in 20–25 categories), Digiflip (they sell bags and electronic accessories) and WS Retail. This structure will get further complicated by the three entities run by Walmart in India namely Walmart Cash & Carry, Walmart Sourcing and Walmart Technologies.

    Complexities Arising Out Of Tax Treaties – Albeit Tiger Global will not find itself in a tax net since it was one of the early investors in Flipkart when the laws were not so stringent, other investors like SoftBank, including the Founders, will need to pay significant taxes. Separately, with the Walmart technology arm based in an SEZ, the combined entity will have to carefully structure and master issues around transfer pricing.

    Differences in Culture and Attitudes – Often, mergers and acquisitions that may otherwise seem smooth and strategic (in theory) turn out to be the most complex and impossible to manage. Walmart’s highly governed structure is a stark contrast to Flipkart’s fluid start-up culture. How the duo manages this, and other differences will define the success (or otherwise) of this deal.

11. Will Walmart find value in the technology assets of Flipkart? 

    Over the years, while Flipkart has invested deeply in technology to support its Big Billion Days and other campaigns, it largely remains a relatively young technology setup with a heterogeneous stack.While one can go to great depths to talk about the products that Flipkart uses, it is important to note that it may well happen that Flipkart’s technology team eventually works closely or maybe even becomes a part of Walmart’s technology subsidiary.What is of peculiar interest and importance to Walmart is Flipkart’s in-house eCommerce tool which it uses to engage its sellers in a B2B setup. While this tool will need much work and investment to ensure it works for Walmart’s reseller base, it can be used in a plug-and-play manner in the eventuality. Also, Walmart will find immense value in the Flipkart Data Platform that allows teams to consume data and process it in real-time.

    Lastly, Walmart has partnered with IBM in China to use Blockchain to not only improve food safety governance and transparency but also use this technology to allow instant detection of food-based epidemics and the capability to remove groceries and other food products from retail shelves in a matter of hours and days. Such partnerships and innovations will also come to use for Flipkart.

12. Will Walmart find value in the technology assets of Flipkart? 

    It is important to note that Alphabet is the holding company of Google and does not directly engage in the day-to-day operations of the latter. Alphabet’s intent since its formation has been to invest in futuristic business models with technology at their core.

    While Google and Microsoft are competition but given the heterogeneous technology environments, there is enough and more room for the technology of both these companies to be used in tandem in the Walmart-Flipkart entity.

    What is also of importance is that Alphabet’s expected investment is nearly ten times ($2 Billion) to that of Microsoft’s ($200 Million). The more invested have a bigger share of voice.

13. How do you believe this deal will impact competition? And how will this impact the industry at large? 

    To put this in context, Flipkart’s biggest competition comes in the form of Amazon, Paytm Mall, TataCliq, Shopclues and the like. While Amazon is expected to be the most closely impacted, we must not discount the impact on Paytm Mall and its key investor Alibaba. For reference, Alibaba has been on an acquisition spree and recently took control Ele.me marking its foray into logistics and brick-and-mortar assets.Further, only yesterday they have also acquired Rocket Internet’s online retail company, Daraz. These acquisitions go to show their laser-sharp focus on building assets and capabilities to put up a serious fight against Walmart and Amazon.

    In the light of this aggressive and head-to-head competition between the Big3 namely Walmart (including Flipkart), Amazon and Alibaba (read Paytm Mall) we can well expect further consolidation and acquisition of specialised eCommerce companies that will allow the Big3 to gain dominant market share in newer segments. Over the coming years, the Indian eCommerce market will be dominated by these Big3.

14. How do you believe this deal will impact the Indian consumer? 

    As mentioned above, one of the many outcomes of the intense competition between the Big3 will be an investment in newer categories like grocery, furniture among others. This will give the Indian consumer availability of new product types which otherwise were not available online.Furthermore, these Big3, to outdo each other, will bring in global stocks and sellers to the local marketplace – this will solve a long-standing complaint of the Indian consumer of the unavailability of some of the world’s best products.Another key outcome for the consumers will be better-managed deliveries given the increase in investment in supply chain and infrastructure.

    This will also translate to the availability of products in Kirana stores which implies better pricing, quicker deliveries and overall better service levels.

15. Will Flipkart still go the IPO way? 

    Our ongoing tracking of global start-ups tells us that Walmart will want to continue to enable Flipkart on its journey of IPO. While this will allow better outcomes for stakeholders, it will also be a win for Walmart and offer better returns on the steep price of $15 Billion. We estimate this IPO to be launched in the next 3–4 years and not anytime earlier.

Sanchit Vir Gogia is the Chief Analyst, Founder and CEO of Greyhound Research, a global Research and Advisory firm.

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Walmart likely to announce Flipkart deal before end of week

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Walmart is likely to announce its much-anticipated deal to buy a controlling stake in Indian e-commerce player Flipkart before the end of this week, two sources said, in what is likely to be the US retail giant’s biggest acquisition of a business.

Walmart and Google parent Alphabet Inc will buy up to 75 percent of Flipkart, the two sources familiar with the matter said, declining to be named as the talks are private.

Bentonville, Arkansas-based Walmart will acquire about a 60 percent stake in Flipkart, while Alphabet will get a roughly 15 percent stake in the online marketplace for about $3 billion, one of the sources said.

Reuters previously reported that Walmart was in advanced talks to acquire 51 percent or more of the e-commerce player for $10 billion to $12 billion, valuing Flipkart at some $18 billion to $20 billion.

Both sources said that Flipkart Group Chief Executive Binny Bansal held a closed-door meeting with the firm’s top leadership at its Bengaluru headquarters on Monday, and one added that Bansal said that Flipkart co-founder Sachin Bansal would exit after the Walmart deal is sealed.

Flipkart last year named Kalyan Krishnamurthy, a former executive of investor US hedge fund Tiger Global Management, as the head of its core business, while Binny Bansal took the broader strategic role of group CEO. Sachin Bansal remained as executive chairman.

The Flipkart Group includes fashion portals Myntra-Jabong, payments unit PhonePe and logistics firm Ekart.

Sachin and Binny Bansal, both former Amazon.com Inc employees, founded Flipkart in 2007, and like their US rival, began by selling books.

Walmart is expected to get three board seats at Flipkart and will also have a say in the appointments of the group’s finance, legal and compliance heads, one of the sources said.

Krishnamurthy and Binny Bansal will remain in their current roles after the deal, the two sources said.

Early Flipkart investors Tiger Global and venture fund Accel will sell a majority of their stakes, one of the sources said.

Japan’s SoftBank Group, which owns roughly a fifth of Flipkart through its Vision Fund, is expected to completely exit, Reuters has previously reported.

The Vision Fund had invested close to $2.5 billion in Flipkart via primary and secondary share purchases last year.

Flipkart will hold a townhall for employees on Friday, with Walmart CEO Doug McMillon likely to attend, one of the sources said. Other top Walmart executives will also be in India for the announcement, the other source added.

A third source said Flipkart had scheduled multiple batches of townhall meetings with employees on Friday, sparking chatter within the ranks that a deal is likely imminent.

Walmart declined to comment. Flipkart, Alphabet, Tiger Global and Accel did not immediately respond to requests for comment.

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Flipkart turns into private firm for buyout by Walmart

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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India’s e-tailer major Flipkart has turned into a private company from a holding firm, ostensibly for a strategic buyout soon by the world’s largest retail giant Walmart Inc, according to documents it filed for regulatory approvals.

“Documents filed by Flipkart with the Singapore’s Accounting and Corporate Regulatory Authority (ACRA) indicate that the holding company has become a private firm – Flipkart Pte Ltd in Singapore where it is registered,” business intelligence platform Paper.vc Founder Vivek Durai told IANS on Friday.

In a regulatory filing with ACRA on Thursday, the city-based e-commerce behemoth said it concluded a second buyback of shares from a set of its investors for $350.46 million in a transaction that closed on April 27.

“The buyback and the subsequent conversion to private company status appear to be part of a series of steps aimed at easing a proposed acquisition by Walmart,” Chennai-based Durai said.

Though the buyback was on April 27, Flipkart filed the documents on May 3. It has obviously paid from the $2.5-billion funds it raised from Soft Bank Vision Fund, Microsoft, E-Bay and other investors last year.

“The buyback will enable the e-commerce giant to bargain for a favourable deal with the US-based Walmart, which is eyeing a majority or controlling equity stake in it to foray into the multi-billion-dollar Indian retail space,” a market analyst told IANS earlier.

The e-commerce major purchased 18,95,574 redeemable preference shares and 1,74,319 non-redeemable preference shares for $350.46 million from a set of investors in a transaction that closed on April 27.

The decade-old firm’s first buyback of shares was on December 7, 2017 when it spent a whopping $869.15 million to buy 72,83,175 redeemable preference shares and 23,01,456 non-redeemable preference shares at $85.3 per share.

“As the company needs to have 50 shareholders to become a private entity, 94 of the 144 shareholders would have exited in the twin buyback rounds, while the remaining, would have partially (15-50%) sold their equity stake,” hinted Durai.

According to another analyst who declined to be named, Flipkart has converted into a private firm so that Walmart could come on board as a strategic investor for controlling stake after the exit of so many institutional and individual investors.

“The deal between Flipkart and Walmart is a done thing, as evident from the exit of majority of its investors. There is no reason otherwise for it to turn into a private firm after being a holding company over a decade,” hinted the analyst.

“Walmart has been losing ground to Amazon in their traditional US market, while Flipkart in India has managed to maintain its lead, albeit slender, over Amazon. It’s not surprising that Walmart wants to take over Flipkart, which has built an exceptional engineering talent at many levels of operations,” affirmed Durai.

“Flipkart, which raised $6.11 billion in 18 rounds of funding since 2009 and bought back over 26 lakh shares worth $1,320 million ($1.32 billion) places its valuation at $17.69 billion,” said Durai.

The valuation is based on the buyback price the holding firm paid to investors, including premium.

With institutional investors holding majority of the combined stake, ranging between 20.79% (highest) by Soft Bank and 6.11 per cent by E-Bay (lowest), the share of co-founders Sachin Bansal and Binny Bansal is 5.5% and 5.25%.

According to the filings, the company also bought shares from its present and former employees on December 13, 2017 for $100 million that were given as stock options.

Of the major institutional investors and venture partners, besides Soft Bank, Tiger Global has 20.55% stake, Nasper 12.83%, Accel Partners 6.44% and Tencent 5.69% among others.

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Government sets up panel to frame national policy on e-commerce

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Ministry of Commerce and Industry on Tuesday decided to set up a task force on e-commerce that will submit recommendations on several issues related to the sector within five to six months.

The decision to set up the task force, under Union Commerce Secretary Rita Teaotia, was taken in the first meeting of the think tank on e-commerce that met under the chairmanship of Union Commerce and Industry Minister Suresh Prabhu.

Officials from various government departments will be part of the task force.

“There will be several sub groups within the task force that will deal with a host of issues, including taxation, physical and digital infrastructure, FDI,” Teaotia said.

“The basic objective of today’s meeting was to formulate a pan India e-commerce policy. Several companies felt that the sector is not doing well without a national policy on e-commerce,” Teaotia added. ​

E-commerce companies including PayTM, Ola, Snapdeal, as well as industry body Nasscom participated in the meeting.

Regulators including Competition Commission of India (CCI) and
Telecom Regulatory Authority of India (Trai) attended the meeting, along with Department of Economic Affairs Secretary Subhas Garg.

“Shared views on data protection and the need to protect interest of consumers. India has done good work on data connectivity. We need good fixed line connectivity under schemes like BharatNet,” Trai chairman R S Sharma said after the meeting.

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Walmart could buy controlling stake in Flipkart as early as next week

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Walmart Inc could seal a deal to buy a more than 51% stake in Indian online marketplace Flipkart as early as next week, two sources familiar with the matter said on Friday.

The US retail giant has been in talks with Flipkart for months to acquire a controlling stake in the firm as it looks to take on rival Amazon.com Inc head-on in India, a market where e-commerce is tipped to grow to $200 billion in a decade.

SoftBank Group, which owns about a fifth of Flipkart through its Vision Fund, was unwilling to sell a part of its stake as Walmart was offering to buy existing shares at a valuation of $12 billion, a price the Japanese tech investor considered low, Reuters had previously reported.

But that stalemate between SoftBank and Walmart has ended, one of the sources told Reuters on Friday. It was not immediately clear though, whether SoftBank had agreed to sell some of its shares in Flipkart.

Walmart’s purchase of new equity is likely to value Flipkart at at least $18 billion.

Reuters reported this month that Walmart completed its due diligence on Flipkart and had made a proposal to buy 51% or more of the Indian company for between $10 billion to $12 billion.

A third source said a deal was close, but things could still drag into the first week of May.

CNBC TV18 had earlier reported that  Walmart is likely to announce the deal in May.

Some of Flipkart’s main investors — US hedge fund Tiger Global Management, South African tech investor Naspers and venture capital firm Accel — are likely to take a full exit as Walmart purchases their shares, sources have previously told Reuters.

Sachin Bansal and Binny Bansal, former Amazon employees who founded Flipkart in 2007 in India’s tech hub of Bengaluru, are also likely to part sell their stake as part of the deal, one of the sources said.

All sources declined to be named as the talks are not public.

Flipkart, SoftBank did not immediately respond to requests for comment, while a representative for Walmart in India declined comment.

SoftBank and Tiger Global own little more than 20% each of Flipkart, Naspers holds nearly 13% stake, Accel 6.4%, while the Bansals own just over 5% each of the company, according to data from business intelligence platform paper.vc.

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Robots will replace humans in retail, says China’s JD.com

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Robots will eventually replace human workers in the retail industry, the chief executive of Chinese e-commerce company JD.com predicted on Tuesday.

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Exclusive: Walmart to announce Flipkart deal in May end

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Walmart, which is in advanced stages to buy a majority stake in Indian online shopping company Flipkart, is likely to announce the deal in less than a month, said people familiar with the matter.

The potential deal is billed as the US retail powerhouse’s biggest acquisition of an online company and its most ambitious attempt at taking on competitor Amazon outside the US.

Walmart is in the “final leg” of talks with all the principal shareholders of Flipkart and has made a proposal to buy between 51% and 76% of the company, said the people quoted above asking not to be named.

Walmart and Flipkart declined to comment for this article.

Barring Japan’s SoftBank Group, which owns around 20% of Flipkart through its Vision Fund, Walmart is keen on buying out all the other shareholders. The list of shareholders includes early investors such as Tiger Global, e-bay, Tencent, Accel, Microsoft and Naspers as well as the founders Sachin Bansal and Binny Bansal.

These ​shareholders own stakes ranging from 3.5% to a little over 20%.

Walmart could shell out over $12 billion in buying a majority stake in Flipkart, making it the single biggest e-commerce acquisition by Walmart and dwarfing its $3.3 billion investment in Jet.com in the US and the $1.5-billion investment in China’s JD.com.

The Walmart board is keen to announce the deal before its annual shareholder meet scheduled for May 30-June 1, said one of the persons quoted above, requesting anonymity. The management board of Walmart, led by Doug McMillion, could make a detailed pitch to shareholders in that meeting, laying out the strategic rationale behind the acquisition.

Walmart’s aggressive push to buy out Flipkart comes barely two months after its fourth quarter earnings reported a steep decline in its e-commerce growth. During the October to December quarter, Walmart’s e-commerce grew by 23% less than half of its reported 50% growth in the third quarter. Investors punished Walmart’s stock, which tanked over 10% in trade.

Flipkart’s former vice-president Manish Maheshwari said given that  Flipkart’s IPO did not go through, Walmart’s offer gives the e-tailer’s existing shareholders an opportunity to cash out. But he added even if Walmart manages to acquire a lion’s share of the company, SoftBank is unlikely to exit. “Softbank is in this for the long run. I think they will hold out,” he said.

The deal was first reported by Reuters, which said Walmart completed​ its due diligence on Flipkart and had made a proposal to buy 51% or more of the Indian company for between $10 billion and $12 billion.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Alibaba creates over 36.8 million jobs in 2017

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Chinese e-commerce giant Alibaba created over 36.8 million jobs in 2017 via its expansive retail ecosystem, a report showed.

The company’s various e-commerce platforms like Tmall and Taobao, which cover over 500 million consumers, offered about 14.05 million jobs to online retailers in 2017, Xinhua news agency quoted the Renmin University of China report as saying.

Apparel and textiles, daily necessities and home appliances were the top three retail items that offered the most jobs, it added.

The booming online retail service also helped boost demand for professionals in upstream and downstream sectors like R&D, design, manufacturing, and logistics, totaling about 22.76 million jobs.

Alibaba saw its revenue grow 56% year-on-year in the fourth quarter in 2017.

As the e-commerce market evolves, more professionals who can make mid-and-long-term development plans, capable of reforming business models and combining digital technologies with offline retail skills that are in high demand, according to the report.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

My Management Mantra: This e-commerce company founder says 50% of the battle is won by just showing up

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

1. What time do you like to be at your desk?

I am an early bird – my day starts at 6 am – by 8 am, kids off to school and I am at my desk. My most productive stage will be the first couple of hours of the day.

2.  Where is the best place to prepare for leadership: at business school or on the job?

B-School will get you only a degree and theoretical basics – the real learning is always on the job, through exposure to real challenges. I know many leaders who never went to any business schools and are great at leading their teams.

3. Describe your management style. 

Enable, empower and lead by example.

“One person cannot always know what’s best, and it doesn’t hurt to get different views on a certain subject.”

4. Are tough decisions best taken by one person or collectively?

I always talk about the importance of my team members in decision-making, because while one might have great ideas, it’s always good to take different opinions for the best implementation of it and to get an unbiased opinion. This goes for any degree of difficulty. One person cannot always know what’s best, and it doesn’t hurt to get different views on a certain subject.

5. Do you want to be liked, feared or respected?

I want to be accepted. I definitely do not want to be feared, and I don’t know anyone who doesn’t want to be liked or respected. However, before all of that comes acceptance, and if you are accepted, then liking and respect will come automatically.

6. What does your support team look like?

My support team consists of my co-founder, the leadership team, the women at ShopClues who empower me on a regular basis, the smiling and happy colleagues who are always nice and helpful, and it all makes me who I am at work. I can safely say that the entire organisation is my support system. Outside of work, my kids and my parents make up my support team.

7. A business outside of your business or a business leader that you draw inspiration from?

I am an accidental entrepreneur and am always inspired by entrepreneurs around me – whether it is Jeff Bezos, Sam Walton or Radhakishan Damani.

8. Which management book has influenced you the most? 

My favourite book is ‘Grit: The Power of Passion and Perseverance’ by Angela Duckworth.

Many among us amble through life’s journey never realising even a fraction of our immense potential. We often undermine and even sabotage ourselves by incessantly repeating to ourselves a false self-narrative that keeps telling us that we are either inadequate or unlucky or somehow held back by our circumstances etc.  The book made me realise that only by finding that never-say-die attitude, that passion to hold on to and work towards your dreams, can one break out of any self-limiting and false narrative that might be holding them back.

9. Do you socialise with your team outside of work?

I do meet my team outside of work on many occasions over food and drinks and discuss topics from around the world, share experiences and just have a good time. You can get to know your colleagues only once you’ve spent some time with them, not stressing about work, but by just sharing experiences.

10. What would your key management advice be?

Just show up! Three words that I live by and think it is the best advice one can take. If you just show up, you’ve already won 50% of the battle. And then take on the rest 50% with all you have, and you can do almost anything. If you fail, you fail – but at least you gave it a shot, and learn something new.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow