Walmart has invested $16bn into Indian e-commerce retail platform Flipkart and will provide an additional $2bn of new equity, as the US retail giant looks to accelerate the Flipkart business.
Walmart announced its intentions to invest in the Indian firm earlier this year and the deal has finally received regulatory approval.
Judith McKenna, president and CEO of Walmart, stated that the investment would aim to create job opportunities for suppliers, as well as providing customers with quality products and customer experience. Additionally, Walmart has said it would also aim to contribute toward India's economic growth as it develops the Flipkart brand.
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The investment has affirmed Walmart's position as Flipkart's primary shareholder with approximately 77% in shares. According to financial services firm Morgan Stanley, Flipkart has been forecast to grow at an annual compound growth rate of 30% and will have a gross merchandise value of $200bn by 2026.
Binny Bansal, co-founder and CEO of Flipkart, said: "We are poised and ready to deliver the full value of this partnership for India.
"By combining Walmart's omnichannel retail expertise, supply-chain knowledge and financial strength with Flipkart's talent, technology and local insights, we are confident that together we can drive the next wave of retail in India."
Flipkart is an online retailer of fashion products,sports products, electronics, home appliances and books. The platform was launched in 2007 and has a reported 100 million registered users, with 100,000 sellers and 8 million shipments per month.