Walmart might invest a billion dollars into one of Amazon's biggest rivals
(Joe Raedle/Getty Images)
Walmart is fighting back against Amazon's e-commerce dominance — and it's enlisting help from the startup world to do it.
The retail giant is reportedly in talks to invest up to $1 billion in Flipkart, India's largest online retailer, according to a new report from Bloomberg's Saritha Rai.
Flipkart, which is valued around $15 billion, sells everything ranging from electronics to apparel to housewares online. In January, the company was rumored to be planning an IPO, but by March, investors had lowered their valuations of the company.
This isn't the first time Walmart has spent billions to gain market share online. Less than two months ago, the company spent $3 billion to buy Jet.com, a New Jersey-based e-commerce startup that had positioned itself as a rival to Amazon.
The deal was meant to help boost Walmart's online business, which has struggled to gain much traction against Amazon, the leader in online retail. Walmart has generated about $14 billion in annual e-commerce sales, compared with Amazon's $99 billion in annual revenue.
Now, the investment in Flipkart could go a long way toward helping both companies gain a foothold against Amazon. An investment from Walmart would not only go a long way toward helping Flipkart fight Amazon in India, but would help Walmart fight Amazon on its home turf.
Flipkart is facing mounting competition in India from Amazon. Amazon CEO Jeff Bezos said in June that the company plans to invest another $3 billion in the country, adding to the $2 billion investment the company made in 2014.
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