Flipkart and Walmart deal would be good for the e-commerce market in India, told Amazon India head Amit Agarwal to mint in an interview. Remarks have come when Flipkart, an online retail company, is reportedly close to selling its majority stake to Walmart. It has been reported that Flipkart would be purchased through a combination of primary and secondary share purchases.
Flipkart and Amazon are the two main e-commerce companies in the country, and the deal is expected to give an upper hand to Flipkart when it comes to fighting with its closest rival for the market share. Flipkart, currently, controls nearly 40 per cent of India’s e-commerce market with Amazon following with a close margin. It was earlier reported that Amazon made a rival bid for acquiring a majority stake in the company.
In the interview, Agarwal also said that he thinks Sachin Bansal and Binny Bansal were “missionary entrepreneurs”. Flipkart was founded by former Amazon employees Sachin Bansal and Binny Bansal in 2007. Agarwal also criticised Flipkart’s strategy of focusing excessively on the smartphone category. At present, Flipkart is the number one player in the business of selling smartphones. Recently Flipkart said it aims to touch 40 per cent market share by 2020 as part of its ‘Mobiles 40by20’ strategy.
Flipkart VP (Mobiles and Large Appliances) Ajay Yadav said the company already is a preferred partner for a number of handset brands and is taking a number of steps to further consolidate its leadership position in the category.
“Approximately, one in 4 phones bought in India is through Flipkart. We have achieved 60 per cent growth in the mobile phone category, compared to an industry growth of 14 per cent. With ‘Mobiles 40by20’, Flipkart will contribute significantly towards adding the next 100 million smartphone users by 2020.” Flipkart aspires 40 per cent of overall market share by 2020, Yadav added.
With inputs from PTI