BENGALURU (Karnataka): United States retail giant Walmart will buy 77% stake in India’s Flipkart for 16 billion dollars, making it the first successful exit for a startup unicorn.
Walmart’s Krish Iyer will be the CEO of the company which will continue to be based out of Bengaluru.
Walmart statement said: “As a company, we are transforming to meet the needs of customers and look forward to working with Flipkart to grow in this critical market. We are confident of providing the e-tailer strategic and competitive advantage.”
Walmart and Flipkart will remain separate brands and the Indian e-commerce company will have an independent Board, which will be revamped to give representation to the US firm.
As Walmart wanted just one founder on the board, Flipkart Co-founder and Executive Chairman Sachin Bansal will leave the company after selling his 5.5 percent stake for a reported $800 million-$1 billion.
Sachin wrote in a post on Facebook today:
His Co-founder Binny Bansal, now Flipkart Group CEO, has decided to stay on, along with the current Flipkart CEO Kalyan Krishnamurthy.
Founded in 2007, Flipkart has led the e-commerce revolution in the sub-continent, growing rapidly and earning customer’s trust with digital technology including artificial intelligence to hard-sell a wide range of goods spanning electronics, appliances, mobile, fashion and apparel.