Walmart Buys India's Flipkart For $16 Billion

Walmart will pay about $16 billion to take control of Flipkart, India's biggest online retailer, in a deal that puts it head to head with Amazon.

The world's largest retailer will take a 77 percent stake, valuing the Indian company at more than $20 billion.

Flipkart has been under pressure from Amazon since it arrived in India five years ago, report the

Amazon had been considering making its own offer for the Indian firm, which has more than 100 million users.

Walmart has been looking to expand in India for years and is flush with cash from recent US tax cuts.

Founded in 2007, Flipkart has high-profile investors including Microsoft, Tencent, and Softbank that will retain their stakes.

The merger with Walmart could be controversial, with concerns about how a deal might affect India's smaller retailers.

96India is one of the most attractive retail markets in the world

Image credit
: Reuters