Amazon Flipkart Bid: Retail Giant Counters Walmart's Offer Amazon Flipkart Bid: Retail Giant Counters Walmart's Offer

Amazon Makes Counter Offer To Walmart’s Flipkart Bid

Amazon Flipkart Bid

Amazon has made a formal offer to buy 60% of Indian online retailer Flipkart.

The news comes a month after it was reported Walmart was in discussions to buy a majority stake in Flipkart, valued between $10 billion to 12 billion USD.

Reuters reports Amazon has countered this offer however spokespeople for Walmart, Amazon and Flipkart declined to comment.

According to CNBC-TV18, the Flipkart/Walmart deal had been expected to close in coming weeks. The channel said Amazon's offer was likely "on par" with Walmart's and included a $2 billion break-up fee.

Morgan Stanley analysts have estimated Flipkart could reach $119 billion in sales by 2020.

If Walmart wins the bidding, it would leverage the company’s growth in the $25 billion Indian eCommerce market against Amazon. A person familiar with the matter told Reuters a Flipkart-Amazon deal was unlikely to materialize due to the threat of domination and lack of competition for smaller retailers.

eShopWorld Insight:

While India eCommerce is growing significantly, there are still challenges in the market – according to experts, logistics and infrastructure need further development. Retailers considering shipping to India need to be aware of not only GST (and consider providing a fully-landed cost to shoppers) but the delays for consumers which may lead to a poor experience.

Amazon image: "box" (CC BY 2.0) by MikeBlogs
Flipkart image: via flipkart.com
sing
Stay up to date with recent Market Insights
Sign up to our newsletter
Top