BENTONVILLE, Ark., BENGALURU, India, Aug. 18, 2018: Walmart Inc. (NYSE: WMT) and Flipkart Group ("Flipkart") today announced the closing of the agreements for Walmart to become the largest shareholder in the Flipkart Group.
Judith McKenna, president and CEO of Walmart International, said the investment will benefit India by providing quality, affordable goods for customers, while creating new skilled jobs and opportunities for suppliers.
Binny Bansal, Flipkart's co-founder and group chief executive officer, stated that by combining Walmart's omni-channel retail expertise, supply-chain knowledge and financial strength with Flipkart's talent, technology and local insights, they are confident they can drive the next wave of retail in India.
The Flipkart investment transforms Walmart's position in a country with more than 1.3 billion people, strong GDP growth, a growing middle class, and significant runway for smartphone, internet, and eCommerce penetration. Future investments by Walmart will support national initiatives and bring sustainable benefits in jobs creation, supporting small businesses, supporting farmers and supply chain development, and reducing food waste.
Structure and Financial Details
Leadership: Flipkart's existing management team will continue to lead the business.
Board: Tencent Holdings Limited and Tiger Global Management LLC will remain represented on the Flipkart board, and will be joined by new members from Walmart.
Ownership: Walmart now holds approximately 77 percent of Flipkart.
Other Shareholders: The remainder of the business is held by other shareholders, including Flipkart co-founder Binny Bansal, Tencent, Tiger Global, and Microsoft Corp..
Reporting: Moving forward, Flipkart's financials will be reported as part of Walmart's International business segment.
New Funding: Walmart's investment includes $2 billion of new equity funding to help accelerate the growth of the Flipkart business.
Brands: Both companies will retain their unique brands and operating structures in India.
Financial Guidance (as of Aug 18, 2018)
FY19 EPS Impact: Consistent with guidance at the time of its second quarter earnings report, the company anticipates a negative impact of $0.25 - $0.30 (prorated for the close date).
FY20 EPS Headwind: Walmart continues to anticipate a headwind to EPS of around $0.60.
About Walmart
Walmart Inc. helps people save money and live better globally. It has more than 11,200 stores under 55 banners in 27 countries. With fiscal year 2018 revenue of $500.3 billion, Walmart employs approximately 2.2 million associates worldwide.
About Flipkart
The Flipkart Group is one of India's largest e-commerce marketplaces and includes group companies Flipkart, Myntra, Jabong, and PhonePe. Launched in 2007, Flipkart offers over 80 million products across 80+ categories. Flipkart is known for pioneering services such as Cash on Delivery, No Cost EMI and easy returns.
