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India’s top e-commerce start-ups could be helped by Walmart to compete with Amazon

Walmart is in converses with turn into the biggest investor in Indian e-commerce business monster Flipkart, as indicated by various reports this week, a move that may reinforce the start-up’s endeavors to rival Amazon.

The U.S. retail monster could buy around a 20 to 26 percent stake in the Indian firm and increment its shareholding to 51 percent in stages, India’s Economic Times revealed Wednesday.

The Bentonville, Arkansas-based organization could contribute between $10 billion and $12 billion for the whole buy, the report included, refering to sources. Be that as it may, at first, the essential venture would be between $1 billion and $2 billion, as per the report.

Flipkart did not instantly restore CNBC’s ask for input. One of its financial specialists SoftBank declined to remark. Walmart was additionally not quickly accessible for input.

The move from Walmart could enable Flipkart to reinforce its endeavors to rival Amazon, which has forcefully put resources into the Indian market and made a great deal of steps.

“In order to maintain the lead with Amazon, (Flipkart) need to expand into grocery and at the same time maintain the gap in fashion and other categories,” Satish Meena, an analyst at research firm Forrester, told CNBC. Grocery was a difficult category to offer without an offline presence, he added.

“A deal with Walmart can give them leverage into offering grocery online through a combination of offline and online channels,” he said.

For Walmart, Flipkart was the “best available option” to access India’s growing retail market, according to Meena.

“After trying to enter the Indian retail market via (an) offline channel, (Walmart) might have realized the difficulties of running an offline retail model in India under the current regulations,” he said.

For Walmart, Flipkart was the “best accessible choice” to get to India’s developing retail showcase, as indicated by Meena.

On Friday, Bloomberg, refering to sources, independently announced that Walmart was in dialogs to spend about $7 billion to wind up the biggest investor in Flipkart.

As a feature of the arrangement, the two reports said that Walmart would purchase shares from existing financial specialists including Japan’s SoftBank and Tiger Global Management.

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