Flipkart buys back shares from IDG Ventures, SoftBank and Accel execs

Click here for enlarge

Click here for enlarge

Emails sent to Flipkart and Walmart did not elicit any response.

Economic Times reported sources as saying there have been talks of Bansal leaving for the last couple of says and a decision will come through. His co-founder, Binny Bansal (no relation) would stay on-according to this report, Walmart only wants one of the co-founders to hang around.

However, citing resources, the report said that Binny Bansal might stay in the firm after the Walmart takeover. Both Bansals began operations out of their Bengaluru apartment. Krishnamurthy, who took over as CEO from Binny in January last year, is seen to have turned around the e-commerce major after two sluggish years when it ceded market share to Amazon under the leadership of Sachin.

Walmart is likely to buy stakes of multiple Flipkart investors, including that of Tiger Global Management and Softbank to end up with at least 60 per cent holding, they said.

With Walmart hands going deeper into the local ecommerce unicorn, Flipkart has reportedly buyback shares from a set of existing investors for $350 Mn, to reclaim its status of a private company - Flipkart Pte Limited.

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Factor Daily stated some friendly investors such as Tencent, Microsoft and Tiger Global might not cash out, while Softbank, which holds 20 percent stake, will exit, making $4 billion in the process.

The regulatory hurdles, however, may put a stop to Amazon's acquisition plans.

For Walmart, the deal with Flipkart may well be its only opportunity to get a foot in the door in India, while Amazon has been investing billions of dollars to gain a greater foothold in the country's e-commerce market and is, understandably, unwilling to accept further competition from Walmart in the region. So Flipkart's investors will likely think twice about any such offer. Meanwhile, Flipkart also stands to benefit as the company has been eyeing offline expansion for a while now. According to the valuation, Walmart will be paying between $14-16 billion for its stake in the company. Its entry could also significantly shake up things for Flipkart's board.

"Binny and Krishnamurthy have backed the deal with Walmart and the two are seen leading the final negotiations, which will likely result in a share purchase agreement by Walmart by early next week", TOI quoted another person close to the deal as saying.

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