Amazon and Walmart are currently pushing their best efforts to acquire a major stake in #Flipkart through its largest shareholders, Tiger Global, SoftBank, Naspers Ltd., besides others provided they intend to sell after agreeing on proper valuation and price offered.

While Walmart does not have an online presence in India and thereby stands to gain through this stake, Amazon, on the other hand, is already a huge success in online business in India and can further consolidate the market through this deal.

If either Walmart or Amazon successfully gets a hold of this stake, the deal could go on to become the largest in e-commerce history predicting it at a whopping unconfirmed amount running in billions of dollars.

Why Flipkart?

Flipkart, the Indian e-commerce giant, based in Bengaluru and founded 11 years ago, first started its online business by selling books. It was Flipkart that first started this concept of selling books online and popularized it. Today, it is a hugely successful online retailer in India for just about everything, employs a solid workforce of more than 33,000 employees, and has an annual revenue of US$3.0 billion. Being a preferred online retailer for just about everything, Flipkart faces a tough challenge from its highly popular competitor, Amazon. Flipkart is undoubtedly a substantial player in the Indian online retail market along with its subsidiaries like Myntra, Jabong.com, PhonePe, eKart, Jeeves.co.in and eBay.in.

How Amazon and Walmart, gain through this deal?

Walmart, headquartered at Bentonville, Arkansas, USA, is the world’s largest company by revenue and a multinational retail corporation operating in 28 countries.

From the start, it focused on establishing its chain of hypermarkets, discount department stores, and grocery stores. Though it wasn’t as aggressive in the online retail market, it did buy Jet.com for $3.3 billion in 2016 to challenge Amazon, who had an already well-established e-commerce empire in the US at the time and currently has one too.

If Walmart wants to arrive in the online retail market scene not only in India and globally, acquiring a major stake in Flipkart is that golden opportunity which it will not let go off too easily. Flipkart founders Sachin Bansal and Binny Bansal, who only share a common surname, previously worked for Amazon.com and went on to create history in India in the online business. Flipkart, thus inadvertently gains Walmart’s potential in both the online and offline retail channels and can reinforce its on-going competition against Amazon.

Amazon.com Inc., doing business as Amazon, is an electronic commerce and cloud computing company founded by Jeff Bezos and also the world’s largest internet retailer in the world, next only to Alibaba.com.

If Amazon acquires the highly potential stake in Flipkart, both would go on to become the undisputed leaders of India’s online retail market. Flipkart stands to gain through Amazon’s already running successful business model suited to the Indian consumer. However, speculation is rife that the deal is likely to tilt in Walmart's favour, but Amazon is definitely gearing up for the challenge.

India is the world’s second-largest smartphone market after the US. Walmart and Amazon have further tapped and strengthened this online shopping potential through their individual mobile apps by offering sales, discounts, new product launches, and their very own product range.

While the e-commerce industry awaits its history, Indian consumers are looking forward to bigger sales, better products and great prices! #Online retail business