Amazon offers to buy 60 per cent stake in Flipkart

Amazon.com Inc. has made a formal offer to buy a 60 per cent stake in Indian online retailer Flipkart, according to a report on Wednesday. 

Amazon has offered Flipkart a slightly higher valuation than the $18-20 billion valuation offered by Walmart, in addition, the e-commerce giant’s bid also comes with a break-up fee of $1.5-2 billion. The Amazon bid is pegged at about $22-23 billion.

According to reports, Flipkart’s investors and founders are in favour of the deal with Walmart, with founder Sachin Bansal overseeing final negotiations with Walmart.

Also Read: Flipkart To Offer Faster Deliveries In An Attempt To Get Ahead Of Amazon

Amazon is also seeking a non-compete agreement with Flipkart’s founders, the report added.

Reuters in April reported that Walmart was likely to reach a deal to buy a majority stake in Flipkart by the end of June.

Also Read: SoftBank Invests $2.5 Billion In Flipkart 

The Walmart global team may come to India soon to close the deal. It remains to be seen if the deal goes through and the battle between Amazon-Walmart for a bigger share of India’s fledgeling e-commerce market will continue till a final announcement is made.