Walmart with its acquisition of 77 percent of Flipkart’s stake regards that omni-channel retail has great potential in Indian market. It will continue to focus on its operation of cash and carry business and sell items through physical stores across the country in a bid to expand its base across India.
Speaking at Retail India Summit and Expo, Walmart India President and CEO Krish Iyer claimed that
"$16 billion deal to acquire Flipkart has attracted foreign and domestic investors in country's retail and omni-channel space. The recent investment in Flipkart shows Walmart is committed to the country. We do see a great value in terms of an omni-channel play in the whole process"
Owing it to demonetization, he said that it played a crucial role in the growth of the retail sector, by structuring the economy along with implementation of the GST.
At Recode’s Code Commerce conference, Binny Bansal, who co-founded the Flipkart along with Sachin Bansal said:
“Sometime in the future, especially with some categories, omnichannel would make a ton of sense. It is definitely something which would be there in the future.
As the Walmart backed e-commerce giant prepares to go public in less than four years, Binny asserted that it would help the company to get on-board with right partners which will make it to lead in the market.
Recently, one of Flipkart’s subsidiaries from Singapore has pumped in $487 million into its retail platform ahead of its upcoming Big Billion Days (BBD) festive season sale. This marks the largest fund infusion after the Walmart acquisition.
While Walmart seems committed to the Indian market, its rival Amazon doesn’t seem to be far behind. The US-based e-commerce major has launched more than $5.5 billion to expand its market in India, the size of which is estimated to grow $50 billion by the end of this year.