So Walmart wants to become a huge player in the IT support game. In fact, they may be already. But Walmart wants more. Maybe that’s why Walmart buys out Flipkart and partners with India.
Walmart leaders said they bought Flipkart for $16 billion. Flipkart is an e-commerce firm out of India. The deal includes a 77% share of Walmart, so now they own over three fourths of Flipkart. This deal also guarantees $2 billion for equity funding. This will help them become a public company one day. However, Flipkart’s leadership will still be under India’s leadership. They will still be backed by India’s corporations like Tencent and Tiger Global.
There are other reasons why Walmart buys out Flipkart. According to one Walmart COO, she admires their problem solving skills. She also likes their AI space and how they’re using and advancing data usage. This is the same company that recently created a IT service platform called PhonePe. I’m sure many in India may worry about losing their jobs due to this. That often happens in mergers. But they shouldn’t be, or so they say. Walmart assures India they will work with the country to bring job creation and growth. They say they will also help bring support to farmers.
Let’s get the elephant out of the room. They want to compete with Amazon as the top online business dog. Every year, they face off with Amazon for online sales. Walmart and Amazon are definitely rivals, and they feel this merger will help them beat Amazon.? I will give them credit. India is one of the largest nations in the world. India is also one of the up and coming nations in technology. So I see why they’re partnering with India to get to that next level. So with this acquisition, don’t you think Walmart can pay their employees a little better?