Presented By:

Ruben Dsouza 07
Krishna Seth 46
Walmart-Flipkart
Rohan Roy 42
Aniket Sebag 45
Sanskar Bangera 03
Acquisition: Case study
Vedant Patil 35
Abhishek Iyer 16
World’s Largest acquisition of E- commerce company
 ● In 2018, Walmart declared buying Flipkart which is
one of the biggest Indian e- commerce platforms, for
a controlling stake of 77% by paying $16 billion.
● In 2017, Flipkart suffered losses of up to 68%, which
made its evaluation fell down to $11.6 billion.
Introduction ● Walmart played an intelligent strategic move by
acquiring Flipkart despite its loss in the
international market.
● Walmart- Flipkart acquisition is widely considered
as the largest acquisition and the world's largest
takeover of an e-commerce firm.
 WALMART:
1. American Company
2. Established July 2ND,
1962
3. Headquarters:
Bentonville, Arkansasus.
History 4. Founder: Sam Walton
5. CEO: C. Douglas Mc
Million
6. Worlds Largest Company
7. 2016 Sales $479 billion
FLIPKART:
1. Indian Company
2. Established
September 5TH, 2007
3. Headquarters :
Bangalore,India
4. Founder Sachin
Bansal. Binny Bansal
5. CEO: Binny Bansal
6. Valuation $10 Billion
Acquisition
Made by
Flipkart
 ▸ Flipkart Pvt ltd. operates in a intricated warren of
inter
▸ connected and independent entities. The structure
of Flipkart started to form in the year 2008 when the
founders Sachin
Corporate ▸ Bansal and Binny Bansal were looking for investors
structure of who would invest in their business. In June 2009
flipkart Flipkart got their first investment of $1 million from
Accel partners But since Foreign Direct Investment
wasn’t permissible in online retail segment in India,
so they began to develop this complicated maze of
organisational structure to accommodate the
foreign money. It got itself registered in Singapore
in 2011.
 ● US based world's largest retailer Walmart has
officially announced that it would buy 77% of stake in
About The Deal Flipkart for $16 billion .
● A world's largest mergers & acquisitions, which value
the Indian ecommerce major at $20.77 billion.
● Where Sachin Bansal co-founder of flipkart leaves
his holding by selling its stake of 5.5-6%
● Whereas Binny Bansal co-founder of flipkart will
continue in Walmart flipkart group as CEO
Reaction of
Stock Market
The Potential
Obstacles to
Deal
 Walmart wanted to enter and capture indian
market because india is one of the most attractive retail
market in the world.
Why walmart
An indian ecommerce market shown a rapid growth for
decides to
acquire Flipkart? recent years because the number of india's using
smartphones (and the internet) increases rapidly in the
next decade.
 Various stakeholders
1. Sachin Bansal : ( $1 billion )
2. Binny Bansal : ($ 104 million)
3. Tiger global : ( $ 3.3 billion)
Profit Earned by
4. Accel partners : ( $ 800 million to $ 1 billion)
various
Stakeholders 5. South-africa based naspers ltd : ($ 1.6 billion)
6. softbank : ($ 4 billion)
 ● 10,000 cr Tax amount estimated on the Walmart-
Flipkart deal.
● 44 Shareholders, including SoftBank, eBay, Naspers,
Tax Implication sold their holdings to Walmart.
● ₹ 7,439 cr Walmart paid to I-T dept in Sept 2018;
included the buyout shares of 10 major shareholders
● Most foreign shareholders now opposing deduction of
taxes by Walmart
 Any company is not only valued by its tangible, i.e.
perceptible by touch, assets, but also by its intangible
assets i.e. Intellectual Property. If the market perception of
the brand of the company is more then it will be valued
Valuation factor higher than another company with lower brand value.
of Flipkart ● Industry
● Market Share
● Investments
● Profit
● New technology
 The possible future outcome of the deals are

1. Low Price More Varieties

2. R&D
Outcome of 3. Collateral Benefits
walmart flipkart 4. Job Creation
deals 5. Further, Move by Flipkart In Competition with
Amazon
 ● Owing to the acquisition of Flipkart by Walmart
within the short-term perspective, the Indian online
buyers will not face any drastic change in their
shopping experience.
● With the private labels of Walmart, the choices of the
users must expand differentiating the products.
Conclusion
● There will be more attraction between the Indian
customers who have not used online shopping yet due
to the expansion of Flipkart.
● Though the penetration of e-commerce is still lesser in
India, still the persistence of the promotions and the
discounts will be continued in this market.