The remainder of the business will be held by some of Flipkart’s existing shareholders, including Co-founder Binny Bansal, Tencent, Tiger Global and Microsoft
It’s official now: Walmart invests US$16B to become the largest shareholder in India’s Flipkart [Walmart]
Walmart today announced it has invested US$16 billion in return for a 77 per stake in India’s e-commerce giant Flipkart.
With this, Walmart has become the largest shareholder in Flipkart.
The remainder of the business will be held by some of Flipkart’s existing shareholders, including Co-founder Binny Bansal, Tencent Holdings, Tiger Global Management and Microsoft Corp.
While the immediate focus will be on serving customers and growing the business, Walmart supports Flipkart’s ambition to transition into a publicly-listed, majority-owned subsidiary in the future.
“India is one of the most attractive retail markets in the world, given its size and growth rate, and our investment is an opportunity to partner with the company that is leading transformation of eCommerce in the market,” said Doug McMillon, Walmart’s President and CEO.
“As a company, we are transforming globally to meet and exceed the needs of customers and we look forward to working with Flipkart to grow in this critical market. We are also excited to be doing this with Tencent, Tiger Global and Microsoft, which will be key strategic and technology partners. We are confident this group will provide Flipkart with enhanced strategic and competitive advantage. Our investment will benefit India providing quality, affordable goods for customers, while creating new skilled jobs and fresh opportunities for small suppliers, farmers and women entrepreneurs,” he added.
“This investment is of immense importance for India and will help fuel our ambition to deepen our connection with buyers and sellers and to create the next wave of retail in India,” said Flipkart CEO Binny Bansal. “While e-commerce is still a relatively small part of retail in India, we see great potential to grow. Walmart is the ideal partner for the next phase of our journey, and we look forward to working together in the years ahead to bring our strengths and learnings in retail and eCommerce to the fore.”
Xiaomi investors question US$100B valuation goal for IPO [Bloomberg]
Investors hadn’t even sifted through Xiaomi’s 597-page filing for an initial public offering last week when doubts over the smartphone maker’s lofty valuation figures began percolating.
People close to the deal had built up the idea that Xiaomi could raise at least US$10 billion at a valuation of US$100 billion, which would make it the biggest global offering since Alibaba Group Holding debuted in New York four years ago. Once investors got a peek at Xiaomi’s actual numbers last week, however, a new number has been making the rounds: the valuation would be more likely to start around US$60 billion to US$70 billion, people familiar with the matter said, asking not to be identified because the process isn’t public.
It’s not entirely clear whether potential buyers are balking at the initial US$100 billion number, or whether bankers and executives are seeking to temper expectations so Xiaomi can enjoy a higher first-trading-day pop.
Chinaccelerator, SOSV, Artisan invest in blockchain talent agency DREAM.ac [press release]
UK-based DREAM.ac today announced it has been selected by Asia’s leading accelerator Chinaccelerator to participate in its intense three month startup acceleration programme.
The firm has also received seed funding from alternative investment firms SOSV and Artesian Venture Partners.
DREAM.ac is the brainchild of serial entrepreneur Richard Foster and seeks to address the global need for qualified blockchain teams by helping to source the talent required to deliver on the US$12 billion blockchain initiatives raised in 2017/2018 so far.
Speaking from Chinaccelerator in Shanghai, Foster, CEO of DREAM, said: “We launched the first iteration of our online platform in 2016 and it has already matched a deep pool of highly-vetted, experienced blockchain experts with thousands of innovative organisations worldwide.”
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