WALMART + FLIPKART CASE STUDY

Transaction Highlights Overview of Acquirer

 Announcement Date : 9 May 2018
 Walmart announced to acquire 77% stake in Flipkart Group for 16
billion.
 Walmart will also invest $2 billion of new equity in flipkart for
accerate business growth.
 Walmart has spent 3.5 billion in year 2023 to increase its stake in
Flipkart to 80.5%
 The remaining shareholders include Flipkart co-founder Binny
Bansal, Tencent Holding, Tiger Global Management and Microsoft
 Walmart is leading retailer/wholesaler in the United states, operating
retail stores and ecommerce websites
 Retail stores includes outlets in various formats including
supercenters discount stores, Sam’s club and other neighborhood
formats.
 Operates 11400 stores and various ecommerce websites under54 banners
in26 countries.
Overview of Target
 Flipkart is a leading ecommerce company for consumer products in India

 Key product categories include consumer electronics, fashion, home essentials,

Strategic Rationale
groceries, and lifestyle products.
 Flipkart deal will provide Walmart an easy entry to a lucrative online marketplace
in India which is expected to grow from $38 billion in 2017 to $200 billion by 2027  Makes 500,000 deliveries across 800 cities, through its supply chain arm, ekart.

 The deal will also fortify Walmart’s position in the global retail against Amazon.  Founded in 2007, the company is headquatered in Bengaluru, India.

 This deal will also improve Walmart’s online sale split in its Total Revene.
Key Financials
Transaction Multiples/Statistics  Gross Mercandise Value(2018): $7.5 billion
 Deal Value : $16 billion
 Net sales (2018): $4.6 billion.
 Enterprise Value : $20.8 billion
 2018 rvenue represents 50% y-o-y growth
 EV/Revenue : 4.5x
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 WALMART COMPANY PROFILE
Business Description 2020 2021 2022 2023 LTM
Revenue 523964 559151 572754 611289 638785
 Walmart is leading retailer/wholesaler in the United states,
operating retail stores and ecommerce websites. %growth 6.7% 2.4% 6.7%
 Retail stores includes outlets in various formats including EBITDA 33702 34031 31348 30089 37377
supercenters discount stores, Sam’s club and other
neighborhood formats. %growth 1.0% (7.9%) (4.0%)

 operates through three segments: Walmart U.S., Walmart %Margin 6.43% 6.09% 5.47% 4.92%
International, and Sam's Club. EBIT 22715 22879 20690 19144 25830
 Operates 11400 stores and various ecommerce websites under54 %Margin 4.3% 4.1% 3.6% 3.1%
banners in26 countries. Net Incom 14881 13510 15470.9 11680 16292
 Major institutional shareholder include-Vanguard Group (5.10%),
Blackrock(3.71%), State Street Corporation(2.39%) Share price movement-LTM
 founded in 1945 and is based in Bentonville, Arkansas.
 Employees-2.1 million associates at the end of the FY2023.

Recent News
 Aug-23 Appointed Kieran Shanahan as EVP and new Chief Operating Officer
of the Walmart U.S.

 Aug-23 Appointed Kath Mclay as the president and CEO of Walmart

International, and Chris Nichol as the president and CEO of Sam’s Club U.S.

 Aug-22 Announced to acquire a minority stake in Sustainable Beef LLC.

 Aug-22 Announce to acquire Vold Systems, a merchandising technology 2

platform.