Walmart Inc. lost out in China by betting on the wrong horse. In India, the retailer is prepared to pay up to secure the top steed.
The world’s biggest retailer is nearing a deal to buy a majority stake in India’s top online retailer for at least $12 billion, people familiar with the matter said. Flipkart Online Services Pvt’s major investors, including SoftBank Group Corp., are on board with Walmart purchasing as much as 80 percent of the company, the people said, and they may complete the agreement in the coming weeks.
In buying Flipkart, Walmart would seek to redress missteps in China, where it initially bought an unprofitable, second-tier online marketplace, then exchanged it five years later for a stake in JD.com, the number-two player behind market leader Alibaba Group Holding Ltd. The strategic shift forced Walmart to play catch-up in the world’s biggest e-commerce market, and Chief Executive Officer Doug McMillon doesn’t want to miss the opportunity before him in the world’s second most-populous nation.
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