Walmart has completed the $16 billion acquisition of Flipkart, the India e-commerce company locked in a battle with Amazon to lead a growing and competitive market of more than 1.3 billion people.
Walmart announced the deal that would give it a majority stake in Flipkart in May. The Flipkart brand will remain, and the deal includes $2 billion in fresh equity from Walmart to help the e-commerce company grow.
“Walmart and Flipkart will achieve more together than each of us could accomplish separately to contribute to the economic growth of India, creating a strong local business powered by Walmart,” said Judith McKenna, president and CEO of Walmart International.
Walmart now has a 77 percent stake in Flipkart, with the remainder controlled by existing investors such as Tencent, Microsoft, co-founder Binny Bansal and Tiger Global. Walmart promised to work on national initiatives to create economic growth in agriculture, food and retail as part of the deal.
The deal should provide a boost for Flipkart, as Amazon has reportedly reached rough parity with the company. It also increases Walmart’s presence in India, where it had 21 stores in 19 cities before the deal.
Amazon has predicted that India will be the company’s top market outside the U.S. within a decade. Amazon has committed to spend at least $5 billion in India, including bringing its Prime fast-shipping program there and creating original movies and TV shows.
Flipkart boasts more than 100 million users, 100,000 sellers and 80 million items on its platform. The 11-year-old company reported $4.6 billion in net sales last year, according to Walmart, a rise of 50 percent over the previous year.