Walmart wants to buy Flipkart, but SoftBank opposed to a sale

Walmart may still end up buying a large stake in Flipkart at a price that could peg the e-commerce firm’s valuation at $20-23 billion.

American retailer Walmart Inc. may end up taking a large stake in Flipkart Ltd at a price that could value India’s largest e-commerce firm between $20 billion and $23 billion, said three people close to the development. If it goes through, the deal will pit Walmart against Amazon in India, mirroring the fight between the two companies in the US.

Walmart has expressed an interest in buying Flipkart but a buyout is unlikely to go through as a key Flipkart investor SoftBank Group Corp. is opposed to a sale, the three people added on condition of anonymity. “SoftBank is not willing to cash out this early as they see themselves as a long-term investor in Flipkart,” said one of the three people mentioned above.

The talks are in the early stages and the companies haven’t finalized the final details, the people said. Walmart is expected to invest fresh capital in Flipkart as well as buy shares from existing investors including Accel Partners and Naspers, they added.

Any deal is likely to make Walmart the largest shareholder in Flipkart, they said.