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Walmart Has Placed Its Most Confident Bet on Flipkart to Take on Amazon in the World’s Most Competitive and Biggest Online Market.

Flipkart, the Indian online retailer that Walmart (NYSE: WMT) 1.04 percent is hoping to go public with in the United States next year, is a significant part of Walmart’s long-term strategy for growth. If this venture is a success, it will expand the retailer’s worldwide reach and bolster its e-commerce capabilities. It might slip much farther behind Amazon if it fails. AMZN dropped 3.72 percent.

Since Walmart invested $16 billion in Flipkart four years ago, Walmart International Chief Executive Judith McKenna stated last week that the business remains supportive of its IPO prospects and that Flipkart has lived up to expectations. Flipkart was valued at $37.6 billion during a recent financing round in July. Walmart controls three-quarters of Flipkart. With Tiger Global and SoftBank among its investors, Walmart has placed its most confident bet on Flipkart to take on Amazon in the world’s most competitive and biggest online market.

Flipkart has expanded into several new industries in the last two years, including food, tickets, healthcare, and online social shopping. Strategic investments in well-known offline businesses have also strengthened its core e-commerce strategy. The Indian online retailer Flipkart is also trying to fight with Amazon for a rich customer base. Semiurban and more value-oriented sectors have dominated up to this point.

Flipkart aims to become India’s biggest consumer internet business, not only in e-commerce but in as many areas as possible, to attract the majority of Indian internet users, with the fast increase of its top line, pushing up its value. Amazon and Flipkart dominate India’s e-commerce business, despite a difficult regulatory environment for international companies.

Perhaps Flipkart is taking a risk in a hard economic climate by dipping its toes into so many different areas. It’s not the first time the super app model has appeared in the area. As a result, it encourages customers to spend more time on the platform and boosts cross-selling opportunities across various products.

Flipkart’s success will suggest to investors that Walmart can take on Amazon in other regions of the globe if these massive investments pay off. This is essential since Walmart is still battling Amazon on the domestic front.

According to market research company Insider Intelligence, the total annual U.S. e-commerce expenditure will top $1 trillion for the first time this year. However, Walmart’s market share is expected to stay at 6.3 percent, compared to Amazon’s 37.8 percent. In 2020, Walmart’s proportion of the market was somewhat greater, at 6.5%.

Walmart has increased its e-commerce capabilities in the United States over the last several years by investing in fulfillment facilities, the marketplace, and delivery. Walmart has made these investments. With a return to service-based expenditure, it’s unclear if the corporation will be able to hang on to its profits from the pandemic period. UBS cautions that Walmart’s sales and earnings might suffer if it doesn’t establish a more robust e-commerce business.

If Flipkart’s initial public offering (IPO) is as successful as many expect, it might be the savior of Walmart’s online shopping efforts against Amazon.

The post Walmart Has Placed Its Most Confident Bet on Flipkart to Take on Amazon in the World’s Most Competitive and Biggest Online Market. appeared first on Best Stocks.

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