Flipkart Won't Change Into Walkart: Doug McMillon

After acquiring 77 per cent stake in Flipkart, the Walmart CEO Doug McMillon said that the company's name won't be changed to Walkart.

The CEO said that there won't be a bureaucracy in the US which will try and run the company. The brick & mortar stores and online retail will be run separately for some time, said McMillon adding that China and India continue to be priority market for us.

The $16 billion deal will shake things up as Amazon and Walmart will get locked head-on in the Indian market.

The world's biggest retail deal will impact the whole segment, the competitors, and the consumers. Acquisition talks began in 2016 and the deal was officially announced on Wednesday.

Flipkart is among the most valued internet startups in the world, which was till now run by two IIT Delhi alumni, Sachin Bansal and Binny Bansal.

Flipkart is being positioned as the arrowhead for Walmart to have another crack at the Indian market, four years after it broke its joint venture with Bharti for a cash-and-carry business.

This time around, Walmart’s choice in India is starkly different. While Flipkart has absorbed billions of dollars of investor money to rapidly grow its business, its main bait has been deep discounts.

Walmart's investment would give Flipkart not just additional funds to fight Amazon, but also arm it with a formidable ally with extensive experience in retailing, logistics and supply chain management.

Walmart is excited about helping farmers make more money and reduce food wastage, Dough McMillon added.