India’s retail space dominated by home-grown market leader Flipkart, with Jeff Bezos-founded Amazon following it, is being infused with increased funding if one were to go by news reports that Wal-Mart is pumping in $1 billion into Flipkart.
Sanchit Vir Gogia, Chief Analyst & CEO of Greyhound Research, says “Wal-Mart is finding ways to compete with Amazon in the US and beyond. In order to increase the share of online sales, they are looking for assets that they can build on top of their recent acquisition of Jet.com in the US and the deal with JD.com in China. In India, Wal-Mart is struggling to scale up due to regulations, and investing in Flipkart may give them significant presence in the online retail market,” says Gogia.
Source: First Post