The Hush Post: Sachin Bansal Flipkart co-founder and chairman is likely to quit the company. This after the announcement that Flipkart and Walmart will enter a business collaboration. Flipkart is the largest and most valued online company in India while Walmart is the biggest retail chain across the world.
According to some estimates, Walmart as an economy is even bigger than economies of the countries like Australia, Pakistan, Bangladesh and most African countries. The reason for the coming together of Walmart and Flipkart is the restrictive policies of the Indian government because of which they couldn’t grow exponentially in the Indian market. At the sametime, in Amazon Flipkart found a potential threat in the online business world and they often took jibes at each other.
While Amazon products are considered to be cheaper due to the universal presence of the company. Flipkart was essentially struggling to size up to Amazon and its aggressive competitive nature.
Sachin started Flipkart in Bengaluru in 2007 as an online book store which has now been converted into a big e-commerce company. Amazon had offered to buy 60 per cent stake in Flipkart. Both the companies collectively own around 10 per cent stake in the country’s largest online market. After Sachin’s exit, Walmart will retain Kalyan Krishnamurthy, the present Flipkart CEO, and Binny Bansal, after the takeover is finalised.