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Walmart’s Acquisition of Flipkart: Emerging Paradigm of the Digital Era

P. Bala Bhaskaran and Nasheman Bandookwala

South Asian Journal of Business and Management Cases, 2020, vol. 9, issue 1, 24-39

Abstract: The case is set around the acquisition of majority shares of Flipkart by Walmart. The case traces the evolution of Flipkart as a startup and explores the context of acquisition by Walmart as well as the strategic fit between the two firms. Technological changes—mainly the proliferation of internet, mobile technology and the consequent digitization—have irretrievable impacts on the retail segment in terms of convergence of on-line and off-line retail and globalization of the markets. The case explores the emerging digitization scenario and its impact on the retail segment as a trigger to the merger process. Flipkart as an Indian startup had to re-incorporate outside India due to policy restrictions on fundraising. The case points to the inadequacies in the Indian policy regime with respect to startup fundraising and differential voting rights. Based on international comparisons, the case triggers discussion on the directions to policy changes if India hopes to create a congenial start-up ecosystem and if the dream of Digital India is to be achieved.

Keywords: Mergers and Acquisitions; strategic-fit for merger; digitisation of retail markets; ecosystem for digital startups; differential voting rights; management vs control (search for similar items in EconPapers)
Date: 2020
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Persistent link: https://EconPapers.repec.org/RePEc:sae:sajbmc:v:9:y:2020:i:1:p:24-39

DOI: 10.1177/2277977919881404

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