As Walmart Acquires Flipkart, Indian Inc Celebrates这是沃尔玛的第二阶段进入印度market after it parted ways with its partner – Bharti Group in 2013

WithSoftbankconfirmingFlipkart's buyout, Indian startup ecosystem just recorded one of the biggest exits of the venture capital-backed company.

While some applauded the deal, other stakeholders raised their concerns related to future of Flipkart's sellers, customer experiences, centralized competition betweenAmazon-Walmart, and most importantly, the impact on smaller e-commerce players.

The Noise

On 9th April, soon after Softbank's CEOMasayoshi Sonduring an earnings webcast accidentally confirmed the deal, Walmart issued a statement on the Flipkart's buyout wherein the former will pay USD 16 billion for an initial stake of approximately 77 per cent in the Indian e-commerce company.

这是沃尔玛的第二阶段进入印度market after it parted ways with its partner –Bharti Groupin 2013. The US-giant presently runs around 21 B2B Best Price cash-and-carry stores along with one fulfilment centre in India.

Announcing the deal,Doug McMillon, President and Chief Executive Officer, Walmart said, "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 the transformation of e-commerce in the market."

Walmart also said it is actively looking for new ways to serve customers along with the moving speed. While, the Flipkart investment provides a unique opportunity, consistent to the retailer with the approach of looking for innovative ways to grow. "The 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 smartphones, internet and e-commerce penetration," the announcement read.

Expert Opinion

Adrian Lee, Research Director,Gartnersuggests that deal is part of Walmart's global expansion strategy. "This should not be observed without mention toAlibaba Group's intent to become the third player in India. With the massive user base, India looms as an attractive market for retailers. It's currently estimated that 15 per cent Indian consumers will be shopping online by end of 2018, and the relatively untapped growth potential is attracting the commerce giants.

"Homegrown companies stand to benefit in the long run. As consumers are more attuned and comfortable to shopping online with e-commerce marketplaces, we see vertical specialists (largest categories being fashion, second electronics) benefiting. High value, more discerning consumers who want differentiated choices and unique offers will seek out specialists to fulfil this need," he pointed out.

Indian Inc Applaud

Amid multiple concerns related to the deal, the Indian Inc and the venture capital community celebrated the deal asVani Kola, Managing Partner,Kalaari Capitalnoted this deal as milestone not just for the company but also for the Indian entrepreneurial ecosystem.

A Landmark milestone for#indianstartup ecosystem. Great outcomes for founders, employees and investors. Congratulations@_sachinbansal@binnybansal! The future of Indian entrepreneurship just got bigger and better.#Startupindiahttps://t.co/lndHAayFoS

— Vani Kola (@VaniKola)May 9, 2018

Fellow entrepreneurKunal Bahl, Founder,Snapdealcongratulated Flipkart's Co-foundersSachin BansalandBinny Bansal. It was rumoured that Flipkart was keen to acquire Snapdeal but the deal didn't see the day's light.

Congratulations@_sachinbansal@binnybansal! This has been an incredible journey for you guys and one that has inspired many entreprenuers in India! ??

— Kunal Bahl (@1kunalbahl)May 9, 2018

While,Vijay Shekhar Sharma, Founder ofPaytm, tweeted that the deal speaks about the openness of the Indian market.

This is 1 Lakh crore+, all cash deal !
I call it, perfect answer to those who were dismissive of Indian startups in an open-for-all market. What an incredible outcome for every believer of@Flipkart. ??https://t.co/uiG9gSTK7v

— Vijay Shekhar (@vijayshekhar)May 9, 2018

Ace investorRonnie Screwvala, referring to his exit at theUTV Group, empathised with Sachin and tweeted an emotional message for the entrepreneur.

Can understand and relate to the Cross Road for@_sachinbansal- Great Value and wealth creation for many. . All the best for your future endeavours.

— Ronnie Screwvala (@RonnieScrewvala)May 10, 2018

On the other side,Ananth NarayananCEO ofJabongandMyntra(Acquired by Flipkart) expressed his excitement to be part of Flipkart 2.0.

Excited to be part of the next phase of growth for the Flipkart group!https://t.co/jbRiuOgiDw

— Ananth Narayanan (@ANarayanan24)May 9, 2018