From last one month, a news is on trending. Flipkart-Walmart deals. Have you heard about this jaw-dropping deal. If not its OK. I am going to discuss the deal and how it inspires Odisha’s young entrepreneurs like Deepak Kumar Nath.
What is Flipkart Walmart Deal ?
This is the center point of our discussion. Let’s start.
Well, Walmart is an American multinational retail corporation. It has thousands of grocery stores, hypermarkets, and discount department stores in the USA. Walmart headquarter is in Bentonville, Arkansas. The Walmart Inc. was founded by Sam Walton in 1962 and incorporated on October 31, 1969.
Walmart has the largest private employer in the world with 2.4 million employees.
Whereas, Flipkart is the biggest Indian e-commerce company. The company mostly sales such as consumer electronics, fashion, and lifestyle products. Flipkart was founded by Sachin Bansal and Binny Bansal in 2007. Flipkart headquarters is in Bengaluru, India.
Then a question arises what is Flipkart Walmart deal?
The Walmart CEO Doug McMillon and Flipkart co-founder Binny Bansal signed the deal. Walmart paid $16 billion for a 77 percent stake in the company, so Walmart will own around 77 percent of the Flipkart.
The Flipkart co-founder Binny Bansal and some other investors will still the stakes holders in the company. But another co-founder Sachin Bansal exit completely from Flipkart.
Why Walmart bought Flipkart?
After seeing one of the biggest business deals in the world you may have the next doubt why Walmart bought Flipkart? And why not Walmart invites instead of using these funds to narrow its massive gap behind Amazon in the USA?
Walmart’s president and CEO Doug McMillon has given your answer before.
He said India is the second most populous country in the world after China. India is one of the best retail markets in the world for investment. By seeing the size and growth rate of Indian market his company invested in India.
There are also some other reasons behind Flipkart Walmart Deal are-
- In 2017, Consumers in India spent $21 billion on e-commerce or online shopping. It makes India the 10th biggest e-commerce market in the world.
- India is a country where the number of middle-class people is growing and encourages domestic expenditure growth faster than the more mature American market.
- Flipkart is the market leader in India. It is estimated that from 2017 to 2021, online retail in India is expected to grow 141 percent to more than $50 billion. according to data from digital research firm eMarketer.
- India has crossed China as Amazon’s most important international market, as displayed by discussions on its earning calls.
Why these deals inspire Odisha’s young entrepreneurs like Deepak Kumar Nath
It obvious to find this answer.
When a company multinational company like Walmart showed interest in India there is something in India. It smelled a huge business opportunity in the Indian e-commerce market through Flipkart.
In 2007, Flipkart was begun its journey from a 2BHK apartment in Bengaluru’s Koramangala. Now it’s the number one e-commerce company in India and the strongest competitor of Amazon.
The company has been inspiring millions of youths across the country. Youngsters in Odisha makes a role model to the Flipkart founders – Sachin Bansal and Binny Bansal and their life story. Deepak Kumar Nath also It inspires them a lot. Deepak Kumar Nath also gets inspiration from this.
From the deal, all will be benefitted, including investors and all stakeholders of the company,” said Mr. Deepak Kumar Nath, the founder of Global Tech Promoters.
Deepak Kumar Nath (Founder of Global Tech Promoters) feels the deal is a win-win for both Flipkart and Walmart.
“The Flipkart story will always be an inspiring one. How the two friends created a million dollar company”, said Deepak Kumar Nath, who founded Global Tech Promoters (GTP). GTP is the first IT firm in Bhubaneswar and Deepak Kumar Nath starts this soon after completing his college studies.
The deal will help Flipkart as well as Walmart to grow fast in India. Now Flipkart can challenge leading e-commerce companies such as Amazon and Snapdeal.
Young entrepreneurs are feeling motivated post the mega-deal and some of them even are seriously looking to replicate the same business model.
Some feel Flipkart has given India its big startup success story in just 11 years. So India is a great place for start-ups.
Flipkart and Walmart deal is one of the biggest deals in history. As Flipkart is an inspiration for young generation start-ups in India so they are very happy with this.
It is a showcase to the foreign investors to invest in India said Deepak Kumar Nath. He also said that the mega-deal is a perfect answer to those who were dismissive of Indian start-ups in an open-for-all market.
The time will come when India will full of start-ups. The days are not so far.