Walmart Flipkart Deal: One of The Largest Wealth Pools For Employees

Must Read

Free Netflix in India: A Result of Slow Growth In Q3 2020?

Netflix is testing a new strategy that could lead to free Netflix in India. The online streaming...

Jio Pages: The Indian Browser Reliance Is Betting On Now!

Looks like Reliance wants to establish Jio as a synonym of technology. After launching a fleet of...

Tesla First Cancels Return Policy And Now Cuts Warranty Period

Just last week Elon Musk surprised everyone by cutting the price of Tesla Model S twice in...

Latter day, the news of Walmart’s acquisition of Flipkart panned out everywhere. At a valuation of nearly $21 billion, this deal has managed to generate one of the largest wealth pools for employees in India. With this deal being hammered down, the total worth of Flipkart’s employee stock ownership plans(ESOPs) has jacked up. Over and above, it includes invested shares worth $2 billion, approx. 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.

Reportedly, Flipkart employees have struck gold with about $500 million drafted out to liquidate employee stocks as part of the Walmart-Flipkart deal. Data sourced by Capitaline and compiled by ETIG Database deduce that, with this recent change, Flipkart’s ESOPs is now worth the combined Esop pools of Axis Bank (Rs 5,065 crore), HCL Tech (Rs 5,498 crore) and Wipro (Rs 3,040 crore).

Follow-Through of Walmart-Flipkart Deal On Flipsters

Reportedly, there have been mixed reactions regarding the noted deal. A mobility engineer in Flipkart, Nikita Dasgupta says – “What matters to a majority of employees is what culture Walmart brings into Flipkart — whether it will continue with its ‘hire and fire’ culture or take a more liberal view.”


The US-based retail giant has already faced lawsuits from warehouse workers who accused Walmart for poor working conditions and safety violations.

For most employees, the larger question is how this acquisition is going to settle things down in Flipkart. The anxiety of employees grows since Walmart has its own labs in India. Infamous for not being employee friendly, there are rumours doing rounds that there could be possible job cuts.

A Word From The Walmart CEO To Flipsters:

Walmart CEO Doug McMillon addressed Flipkart employees, emphasizing the fact that this deal happens to be among the best decisions since India was the best place to spring up at. With a keen intention to “empower” Flipkart, McMillon also claims to learn from them about building full ecosystems and payments.

I am confident that this is one of the best decisions our company has made – we believe in India, have seen growth in India in every way. This is the best place to be anywhere in the world. – McMillon, Walmart CEO/President

Furthermore, the Walmart chief goes on to state that the values of the two companies were “very much aligned.”

A Brilliant Strategic Move Or A Quite Admission of Defeat?

The hot-off-the-fire deal is considered to be a brilliant strategic move to allow the US retail behemoth to operate globally. Yet, this deal is born out to be kind of a second best outcome after Walmart’s entry into Indian retail market was restricted by India’s foreign retail investment plans. Walmart has failed to build its own business since 11 years of being able to operate in India. Its joint venture with Bharti was also the faux pas. Walmart would have struggled to open its own e-commerce business since January, the Indian government made it relatively harder for multi-brand retailers to have retail outlets.


Hence, the move will aide Walmart in building an entire ecosystem around online commerce business, in this country and Walmart won’t just be restricted to “marketplaces”.

What’s On The Table: Walmart-Flipkart Deal

  • Flipkart, which is currently a manpower driven company, will hopefully become tech-driven with Walmart’s entry.
  • Flipkart will be listed on Indian stock exchanges as a fully-owned Walmart subsidiary down subsequent years.
  • Stating that e-commerce is still relatively small-scale, the pact with Walmart is a great potential to grow.
  • Although Walmart promises Flipkart employees to employ their own approach to operations, they both will maintain distinct operating strategies.
  • Currently, online sales in India are worth about $19.6 billion.


Please enter your comment!
Please enter your name here

Latest News

Mobile Internet Speed In India: From Bad To Worse [REPORT]

Languishing. And la…g…g…i…n…g. The sorry state of the desi internet in India. In a...

Google Boots Out 3 Immensely Popular Android Apps from Play Store: Questions About Content Policing Resurface

With such a flourishing wilderness of Android apps on the Google Play Store, there is every likelihood of encountering something seemingly innocuous...

Reliance Future Group Deal In The Soup: SIAC Orders To Put The Deal On Hold

When Reliance agreed to acquire Future Group for $3.4 billion, recently, the share of Reliance Industries Limited rallied on the stock market....

Can Facebook Be Trusted For Newly Announced Hosting and Shopping Services?

Every coin has two sides. For Facebook Inc. (NASDAQ:FB), the positive side says that it has launched interesting, new features to further...

When the Going Gets Tough, the Tough Gather Online

Tech shows; we all know them, love them, and wish we could get to them. Unfortunately, that's not always possible. Or is...

Flipkart, Amazon Hurtle To Secure Their Slice in Aditya Birla Fashion

The battle conch for the festive season has already been blown. Now in a bid to take control of a new frontier,...

In-Depth: Dprime

Will ‘TikTok By Microsoft’ Be A Winner?

For the last two years, TikTok has been in the public eye for all sorts of reasons. First, it was the exploded...

Facebook Subscription Model: Looking Beyond Ad Dollars?

Seldom do job listings create a stir this gripping. However, when the job listing in question is a stealth post from Twitter,...

Will The Online Food Delivery Market in India End Up Becoming A Two-Horse Race?

It's pretty much evident that the food delivery space in India is all set to get riled up soon enough as one...

More Articles Like This