The most awaited deal of this year, the Walmart-Flipkart deal is likely to announce on Wednesday that it would buy 70-75 percent of online retailer Flipkart for about USD 15 billion. 

Walmart will also likely invest USD 2 billion directly by infusing fresh equity in Indian e-commerce giant Flipkart. Flipkart was founded by Sachin Bansal and Binny Bansal in October 2007. Walmart will announce the investment in Flipkart in partnership with tech giant Google.

Market experts are also seeing this deal as an American business war between Amazon and Walmart in India which is world’s second largest online market. As part of the deal, co-founder and executive chairman Sachin Bansal will likely exit completely, selling his 5.2 percent stake. The existing shareholders of Flipkart like China’s Tencent Holdings, and US-based Tiger Global Management, will exit partially and retain small stakes.

In the fiscal year ended March 31, Flipkart recorded a gross merchandise value (GMV) of USD 7.5 billion, effectively meaning that goods worth USD 7.5 billion were traded through its site involving thousands of sellers and millions of buyers. It recorded net sales of USD 4.6 billion during the year, representing more than 50 percent growth in both cases.

Walmart in India 

This will be Walmart’s second investment in India’s retail market. In 2013, it pulled out of its wholesale joint venture with Bharti Group. Bharti Walmart, an equal partnership joint venture between Bharti Group and Walmart, which jointly ran wholesale stores under the `Best Price ModernWholesale’ brand.

Walmart India currently operates 21 B2B Best Price cash-and-carry stores and one fulfillment center in 19 cities across nine states in India.