On Wednesday, Masayoshi Son, chief executive of SoftBank, held a press conference in Tokyo revealing the Walmart-Flipkart deal, and disclosing that SoftBank's $2.5-billion stake in the company, picked up last August, would be worth $4 billion if it chose to exit.
South Africa-based global Internet and entertainment group, Naspers Limited announced the sale of its 11.18% stake in Flipkart, to Walmart for $2.2 billion representing an internal rate of return of approximately 32%.
After selling his stake and exiting Flipkart, an emotional Sachin took to Facebook to speak his mind on cutting his links with "Flipsters".
Walmart CEO Doug McMillion said Flipkart, in which the USA retailer is acquiring 77 percent stake, would continue to run as a separate board-managed company with co-founder Binny Bansal as the CEO.
The All India Online Vendors Association (AIOVA) too expressed its reservation over the probability of Walmart bringing in its own private labels via Flipkart to Indian consumers at hyper-competitive prices, which will cannibalise the market and make it hard for other sellers to operate.
Despite this, super markets and hyper markets continue to be prohibited territory to global companies.
The CPI-M said it was common knowledge that Walmart sourced its products from global markets and now these will be sold in India, further destroying the small scale and medium scale sector which is the largest provider of employment after the agricultural sector.
Surveillance stepped up amid DRC Ebola outbreak
The WHO is planning to approve the deployment of that experimental vaccine soon, but it's not yet clear how effective it will be. It has been revealed that over 80 per cent of the population will be needed to get immunised to prevent outbreak of the disease.
When contacted, a SoftBank spokesperson declined to comment.
Sellers have always been at loggerheads with online marketplaces Flipkart and Amazon on several issues including discounts sharing, commission margins, and alleged edge afforded to in-house vendors.
Walmart has retained the Flipkart management led by Binny Bansal while Sachin quits from the company.
Signed between India and other countries, a Double Taxation Avoidance Agreement (DTAA) ensures investors don't end up paying taxes on income earned from the source country and also in the country of residence. Its Stores offers close to 5,000 items in India.
Mumbai: The deal between Walmart and Flipkart could be a boon for the offline listed retail firms as it would push up their valuation, say analysts. To avoid the short-term taxation issue, SoftBank may hold the Flipkart stake for 6-12 months.
The mega Walmart-Flipkart deal may have created some tough competition for their bitter rivals like Amazon and Alibaba, but almost hundreds of current and former employees of Indian e-commerce giant Flipkart, it has come as a blessing! Why?