Talks between Walmart and Flipkart for the retail giant to invest $1 billion (around Rs 6,700 crore) in the Indian e-commerce service are reportedly in the final stages. A person familiar with the matter told Bloomberg that Walmart will hold a minority stake in Flipkart under the deal, though negotiations are still underway and the final conditions of the agreement have not yet been determined.
As both companies take on Amazon, this investment will give Flipkart the funding it needs to retain its position as India's top online retailer. Gautam Chhaochharia, the head of financial services firm UBS AG, said "If the deal goes through, the competitive intensity between Flipkart and Amazon will shoot up."
Walmart, the world's largest retailer, can gain from the agreement, as well, as the deal would grant it exposure to India's growing e-commerce market. Flipkart's current valuation stands at $16 billion (around Rs 1.06 lakh crore), according to CB Insights. Both companies declined to comment on the deal.
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