Flipkart's Sachin Bansal's May Quit After Closing Deal With Walmart

Amazon halts its construction in Seattle

Amazon halts its construction in Seattle

As per the report, SoftBank will be selling all of its stake in Flipkart at a valuation of roughly $20 billion.

Besides the grouse of being left out of the loop on such a crucial transaction, the sellers also fear that Walmart may look at bringing in its own private labels via Flipkart to the Indian consumers, adding to competitive pressures. The American company will buy 73% of Flipkart for around $14.6 billion in a cash-and-stock buyout, reported Factor Daily. Walmart and some Flipkart investors, including Japan's SoftBank Group Corp., are yet to agree on the final details and a deal could take at least a month to be signed, the report said.

Amazon's bid is likely to be at par with Walmart Inc's bid for the Indian e-commerce company.

The talks with Walmart for what could be its largest acquisition to date are still ongoing, and a deal is expected to be clinched soon, two people told Reuters on Wednesday. SoftBank invested in Flipkart a year ago through its investment arm SoftBank Vision Fund and held a little over 20% stake in the ecommerce major.

Meanwhile, Flipkart has bought back $350 million worth of shares from its investors as it seeks to convert its Singapore-incorporated company to a private limited firm. While co-founders of Flipkart reportedly willing to sell their stakes and may take an exit from the company, Google's entry in the Flipkart-Walmart deal will take on Amazon's supremacy in India. Flipkart's other co-founder Binny Bansal, who isn't related to Sachin Bansal, could remain on in some capacity as Walmart is said to be keen on retaining only one of them. "It is important for food safety", the source said.

Emails sent to Flipkart and Walmart did not elicit any response.

"The stakes are really high for Walmart", said Brian Yarbrough, senior research analyst with Edward Jones. The interest of Amazon and Walmart in India could also be because the retailers have struggled to find footing in China, largely because of the presence of local e-commerce players like Alibaba.

Amazon's offer could kickstart a new battle between it and Walmart, already fierce retail rivals in the United States.

The world's largest online retailer has been pouring billions of dollars into India to ship goods to shoppers faster, contributing to growing losses internationally.

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