Co-founder Sachin Bansal quits Flipkart following Wallmart takeover

Co-founder Sachin Bansal quits Flipkart following Wallmart takeover

Co-founder Sachin Bansal quits Flipkart following Wallmart takeover

With US retailer Walmart Inc's acquisition of 77 per cent stake in Flipkart for about United States dollars 16 billion, the 11-year old Indian e-commerce firm also took a decision to part ways with its co-founder Sachin Bansal, who along with Binny Bansal founded the company in 2007. "For us the bigger focus is to build around the e-commerce ecosystem that we have built rather than taking Flipkart to newer market", he said, adding that startups and e-commerce are to two big engines of growth for the Indian economy.

In India, Accel had a good exit, when cab-hailing app TaxiForSure was acquired by rival Ola for $200 million in a cash and stock deal.

Walmart said Flipkart's logistics, payments and apparel businesses offer new areas of growth.

In a separate deal, already announced but awaiting US regulatory approval, SoftBank plans to give up some of its stake in USA wireless company Sprint, under a $26.5 billion merger deal that will combine it with T-Mobile. With this deal being hammered down, the total worth of Flipkart's employee stock ownership plans (ESOPs) has jacked up.

The remainder will be held by existing shareholders, including Flipkart co-founder Binny Bansal, China's Tencent Holdings, Tiger Global Management and Microsoft Corp, the company said.

The US-based retail giant has already faced lawsuits from warehouse workers who accused Walmart for poor working conditions and safety violations. According to the report, Walmart will announce that he will purchase this Indian e-commerce company in the coming weeks.

"This investment is of enormous importance for India and will help fuel our ambition to deepen our connection with buyers and sellers and to create the next wave of retail in India", said Binny Bansal, Flipkart's co-founder and group chief executive officer.

Since stepping down as the CEO of Flipkart in 2016, Sachin Bansal has been away from the day-to-day operations of the company.

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Chittaranjan Mohanty, an alumnus of Xavier Institute of Management, Bhubaneswar (XIMB) who now runs an online vegetable delivery start-up, Hi Fresh, is all praise of Flipkart's business model and feels the deal will inspire budding entrepreneurs. Last year, however, the company's valuation dropped to about $12 billion, and the duo lost their billionaire status.

Closing is expected later this calendar year, subject to regulatory approval.

Only 14 per cent of its over 400 million Internet users shop online and the number is projected to rise to over 50 per cent by 2026.

From a global standpoint, the deal certainly shows the confidence of foreign investors in Indian brands. "It is much more hard for the government to control and regulate foreign owned platforms and all indigenous players will have no value if a foreign company runs the platform", Khandelwal has claimed. As of now, Walmart has 21 retail stores in India. It could potentially use those Best Price stores as pickup and delivery points.

Flipkart sealed the world's largest e-commerce deal yesterday with Walmart, cementing India's place in the global e-tailing league. "But I'll be watching and cheering from the outside - Flipsters, you better continue to do a good job!"

Mumbai: The government today said there is a great deal of interest for disinvestment of Air India, amid the deadline for submission of preliminary bids ending this month. When contacted, Sachin Bansal said nothing about the reasons for leaving Flipkart. The final make-up of the board has yet to be determined, but it will also include independent members. In the fiscal year ended 31 March, Flipkart reported sales of $4.6 billion.

This is unedited, unformatted feed from the Press Trust of India wire.

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