Walmart Chief Executive Doug McMillon said Flipkart group, in which the USA retailer is acquiring 77 per cent stake, would continue to operate as a separate board-managed company with co-founder Binny Bansal as the CEO.
Walmart's investment includes $2 billion of new equity funding that would help Flipkart accelerate its growth pace amid stiff competition from Amazon, which is also pouring money into its India operations.
After selling his stake and exiting Flipkart, an emotional Sachin took to Facebook to speak his mind on cutting his links with "Flipsters".
A day after announcing United States dollars 16 billion investment in India's largest online retailer Flipkart, Walmart Inc today said it will continue to grow its wholesale cash-and-carry business, adding 50 new stores in the next four-five years.
The tax burden of the exit is being attributed as a major consideration for SoftBank, as its investment in the Indian ecommerce unicorn isn't even one year old. Technically speaking, Flipkart India's shares haven't been sold at all but, Flipkart Singapore, the report added.
When contacted, a SoftBank spokesperson declined to comment.
"Online groceries would be where Walmart-Flipkart and Amazon would start focusing going forward", CMR said.More news: Nasa is sending a helicopter to search the skies over Mars
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"Therefore, being the controller of the company, Walmart may use the data and other information as per its will and wish and the possibility of compromising the data cannot be ruled out", he said, according to the statement.
On Wednesday, the Walmart chief executive officer, Doug McMillon who was in India said that Flipkart will continue to operate as a separate entity.
Signed between India and other countries, a Double Taxation Avoidance Agreement (DTAA) ensures investors don't end up paying taxes on income earned from the source country and also in the country of residence.
The report added that Flipakart's remaining shareholders are cofounder and group CEO Binny Bansal (4-5%), Tencent (6%) and Microsoft (1%), while the remaining stake is held by a few small investors and employees.
"Since the deal has a greater ramification on India's retail trade, a closer scrutiny is certainly warranted".
Mumbai: The deal between Walmart and Flipkart could be a boon for the offline listed retail firms as it would push up their valuation, say analysts.
U.S. retail giant Walmart hopes to become a success story in India following its US$16bn purchase on Wednesday (9 May) of a majority stake in Flipkart, India's biggest online retailer, according to media reports.