Walmart-Flipkart deal a betrayal by Modi government, says CPI (M)

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"India represents a massive long-term opportunity", he wrote. It's a move that might have near-term losses but is part of a larger shift by Walmart to look toward the future.

The company retreated from Britain, selling a controlling stake in its British arm ASDA to J Sainsbury.

However, customers are sure to get more choices from different competitors as it is expected that Flipkart is expected to diversify its inventory to attract more Indian consumer segments that haven't entered the online shopping market.

"In this entire deal which saw Flipkart's valuation at around $20.7 Bn, there is still no tax clarity as the treaties signed by India with Singapore and Mauritius changed previous year". Consider the sheer scale of operations - Walmart has $500 billion plus revenue globally and the total Indian retail turnover annually is also close to that ($672 billion).

CAIT said that Walmart-Flipkart deal is "nothing but in long run a clear attempt to control and dominate the much potential retail trade of India by Walmart through e-commerce which is only a bridge to reach out to offline retail market of India". Rs. 13,455 crore. This establishes a fact that ESOPs held by about 100 employees of Flipkart is now estimated to be worth more than $1million. Amazon has an equal share as Flipkart in India.

Flipkart founders Sachin Bansal and Binny Bansal (not related) were billionaires in 2015 when Flipkart was valued at $16 billion.

In India, Accel had a good exit, when cab-hailing app TaxiForSure was acquired by rival Ola for $200 million in a cash and stock deal. "It is much more hard for the government to control and regulate foreign owned platforms and all indigenous players will have no value if a foreign company runs the platform", Khandelwal has claimed.

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Foreign retailers, including Walmart, have faced years of political resistance to opening outlets in India, where mom-and-pop store owners wield enormous influence. Binny Bansal will still remain invested in the company as the Group Chief Executive Officer, along with other shareholders like Chinese Internet conglomerate Tencent, Microsoft Corp. and investment firm Tiger Global. The acquisition is Walmart's biggest foreign investment ever and also one of the most successful exits by an Indian startup.

He also said that the mega deal is a ideal answer to those who were dismissive of Indian start-ups in an open-for-all market.

The number of jobs to be created is however unclear, but the deal between the companies would create jobs through development of supply chains, commercial opportunity and direct employment. The group says it represents 60 million businesses.

"It is not so much about succeeding in India for Walmart because that may or may not happen", said Neil Stern, senior partner at retail consultancy McMillan Doolittle. He, however, had to soon return it as Binny left Amazon in just 8 months. Their paths crossed at Amazon too, where both worked for this Jeff Bezos led company.

Amazon, which had a chance to increase it's existing 31% share in the online retail market in India with immediate effect will now have to wait.

It has also failed to crack the China market due to stiff competition from home-grown Alibaba.

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