Walmart backed the Indian e-commerce platform, Flipkart is set to pour $204 million i.e. 15 billion INR in Aditya Birla Fashion and Retail Ltd. It wants to be a part of the world’s fastest-growing retail market.
Kumar Mangalam Birla said in an exchange filing, this Friday, that his business authority is giving a 7.5% stake to Flipkart in return. The stock price hiked as much as 12.2% in Mumbai when the news regarding this investment was circulated.
This deal will help both the platforms to enter into the relatively small towns in India. As per stats, 60% customers during the Big Billion Days sale and Amazon Great Indian Festival sale, this year, belong to Tire-II cities only.
Alongside Flipkart, its rival, Amazon India is not far Behind. It already tied knots with some Indian retail chains including Shopper Stop Ltd. and Future Group. According to Tehnopak Advisors, the Indian modern retail market will be double to $188 billion by 2023 from the valuation of $79 billion in 2018.
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