Walmart Inc. will retain existing management of Flipkart Group as it completed the acquisition of a majority stake to become the largest shareholder in India's No. 1 online retailer.
Tencent Holdings Ltd. and Tiger Global Management LLC will remain represented on the Flipkart board, said a joint statement by Walmart and Flipkart, adding that new members from Walmart will join the board. Flipkart's existing management team will continue to lead the business.
The world's largest retailer bought 77 percent stake in the homegrown e-commerce company for $16 billion as Masayashi Son's SoftBank Group exited. It included $2 billion of new equity funding to help accelerate Flipkart's growth as it takes on Amazon.Inc in India's $670-billion retail market.
“By combining Walmart's omni-channel retail expertise, supply-chain knowledge and financial strength with Flipkart's talent, technology and local insights, we are confident that together we can drive the next wave of retail in India,” Binny Bansal, Indian e-commerce firm's co-founder and group chief executive officer, said in the statement.
Judith McKenna, president and chief executive officer at Walmart International, said that two will achieve more together “than each of us could accomplish separately to contribute to the economic growth of India, creating a strong local business powered by Walmart”.
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