Walmart, the world’s largest retailer, is in advanced talks to invest $1 billion in Indian e-commerce site Flipkart, as reported today by Bloomberg News.
The potential deal would give Flipkart a competitive edge when taking on Amazon and the Alibaba-backed Snapdeal in the competitive Indian e-commerce market, the third largest in the world. Walmart would receive a minority share in Flipkart, as well as a chance to take on Amazon on more favorable footing than it holds in the United States.
The talks come only a few months after Amazon vowed to pour another $3 billion into its India operations, bringing its total investment in that area to $5 billion. Walmart in August announced a deal to buy Amazon rival Jet.com for $3.3 billion.
Flipkart was founded by two ex-Amazonians in 2009, and now has an annual revenue of over $1.5 billion.
