American retail titan Walmart Inc. has announced the acquisition of Flipkart for USD 16 billion (over Rs 1 lakh crore) for a valuation of over USD 21 billion, making it the biggest e-commerce deal in the world. Walmart has obtained 77 per cent in the Bengaluru-based e-commerce giant. The rest of the business will be held by some of Flipkart's existing stakeholders, including Flipkart co-founder Binny Bansal, China's Tencent Holdings Ltd, Tiger Global Management LLC and Microsoft Corp, the company said in a statement.  

Doug McMillon, Walmart’s president and chief executive officer, 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 transformation of eCommerce in the market." 

“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. 

Flipkart’s co-founder Sachin Bansal will sell his complete 5.5 per cent stake in the ecommerce firm.

While Walmart and Flipkart will leverage the combined strengths of both companies, they will maintain distinct brands and operating structures. Currently, Walmart India operates 21 Best Price cash-and-carry stores and one fulfilment centre in 19 cities across nine states in India, with more than 95 per cent of sourcing coming from India, aiding suppliers, creating skilled jobs and contributing to local economies across the country. Krish Iyer, president and chief executive officer of Walmart India, will continue to lead that part of the business, the company said in a press release.