Sachin Bansal could exit Flipkart following Walmart deal


Last year, SoftBank Vision Fund had pumped in an estimated United States dollars 2.5 billion in Flipkart for about 20 per cent stake in the company. The giant is also seeking a non-compete agreement with Flipkart's founders, according to the sources.

Sources said all major investors in Flipkart, including SoftBank of Japan, are more or less on board with Walmart's purchase and the deal could be announced in the coming days.

Walmart Inc has reportedly reached a deal to buy a majority stake in Flipkart by the end of June in what could be the United States retail giant's biggest acquisition of an online business, two people with direct knowledge of the matter said.

If Amazon acquires Flipkart, the two will have tremendous control of India's burgeoning e-commerce market.

Another senior executive at Flipkart who spoke to Moneycontrol on the condition of anonymity said that the top management has not communicated anything about any deal to the employees, and even if a deal was to happen, employees are not expecting any visible change in the way the company operates.

Walmart proposed to retain Flipkart's current structure, while Amazon has made not such details known.

The Economic Times newspaper first reported about the negotiations in January, although it had said that the deal would be a minority investment.

The rival company Amazon has also made a counter offer to buy 60 percent stake in Flipkart.

Over last 2-3 years, Sachin Bansal has been focusing on building out private label brand called "Billion" under Flipkart, besides looking at government affairs.

Amazon has emerged as new contender for Indian e-commerce giant Flipkart. Soft-Bank and Tiger Global are the two largest investors in Flipkart; Naspers, Accel Partners, DST Global are among the other key shareholders. Flipkart was last valued at about United States dollars 12.5 billion when it raised USD 2.5 billion from Masayoshi Son's SoftBank previous year.