Softbank May Invest Whopping $3 Bn in Paytm Mall, Thanks To Flipkart

Softbank May Invest Whopping $3 Bn in Paytm Mall, Thanks To Flipkart

TechCrunch called the clause "highly unusual", describing it as an "apparent insurance policy for earlier investors" in Flipkart who may be anxious about limited upside as a result of the Walmart stake.

The caveat is a highly unusual one as far as we can tell - an apparent insurance policy for earlier investors who were concerned about giving away too much upside by selling so many of their shares now to Walmart.

"Amazon already has a substantial foothold in India at 27% market share, and Walmart knew they needed to get into that market either by acquiring Flipkart or taking market share away", said Neiweem. On May 9, Walmart Inc said it is buying a 77 per cent stake in Indian e-commerce retailer Flipkart for about Dollars 16 billion, but it is yet to disclose financing plans.

The acquisition may lead Flipkart to take a move to make Flipkart public within four years as per the public filing reported by a major daily journal.

Walmart may also, in certain situations, "exercise a "drag along" right to cause the remaining minority shareholders to sell all or a portion of their shares in a sale of Flipkart", per the filing. However, there is the caveat in the deal, which is an apparent Insurance policy for the investors (earlier) who were concerned about giving their stakes to the Walmart.

Sachin Bansal: He will sell his remaining 5.5 percent stake for about United States $1 billion. Some reports also claim that Sachin Bansal was left with no major choice other than leaving the firm.

First look! Khloe Kardashian and Tristan Thompson's daughter looks too cute
She's since deleted the post, but the omission of new mom Khloe and mother of three Kourtney was really telling. Khloe Kardashian found it "so tough" to pick a name for her daughter.

Another of Walmart's minority shareholders, very notably, is SoftBank, whose CEO, Masayoshi Son, preempted Walmart itself by announcing the deal to reporters and analysts last Monday while discussing SoftBank's quarterly results.

SoftBank Vision Fund invested about $2.5 billion in Flipkart in August previous year after a failed attempt to orchestrate a merger with Snapdeal, which was its first bet in the Indian online retail space in 2014.

Flipkart's coming together with Walmart is expected to be a matter of concern for Amazon after a considerable time frame.

The Japanese company had invested about $900 million in Snapdeal in a hope that the home grown e-tailer would be able to challenge Flipkart's market leadership, but saw the company slip to a distant third behind Amazon India by 2016.

It also said India will be a top-five e-commerce market within five years as total e-commerce sales in the country are expected to reach $200 billion by 2026, growing by an annual rate of 29%.