Walmart has been eyeing to control the Indian retail market for a very long time now. As part of its quest, it is working out a deal with Flipkart. Even as Walmart is all set to enter the ecommerce sector by becoming the new owner of Flipkart (acquisition talks are on), the latter appears to be saying goodbyes to many of its investors.
The latest development at the homegrown ecommerce giant is the speculated exit of co-founder Sachin Bansal. If sources are to be believed, he has the move well thought-out, as he plans to sell his 5.5% stake in the company for nearly USD1 billion. Please aware of the matter mentioned,
“Sachin was not aligned with the strategy and operating structure that was being proposed post-Walmart coming on board.”
Earlier, it was reported that Sachin might leave and CEO Kalyan Krishnamurthy would stay on. As the D-day for the deal comes closer, it is becoming evident that the proposed plan is to have the other co-founder, Binny Bansal, stay on as the group CEO and the new executive chairman of Flipkart. Kalyan will however continue to be in company’s operations but he won’t be taking up a seat on the board. Binny will keep his board seat and will partially sell his stake as per the current updates.
With all these developments going on the Filpkart investors SoftBank and Naspers are expected to completely exit Flipkart. Tiger Global, along with other early investors, is expected to sell 70-80% of its shares to Walmart. Out of the 50 investors at Flipkart, only Tiger Global and Tencent are expected to get a board seat each. Meanwhile among all the exits, Google is expected to invest USD 3 billion in the company.