According to Flipkart CEO, Kalyan Krishnamurthy, Walmart has confidence in the Indian market’s potential and is confident that Flipkart will be able to handle the e-commerce space. Krishnamurthy has trashed reports claiming Walmart’s plan to exit.
While a Morgan Stanley report claimed that Walmart was planning to leave Flipkart, owing to the rising complications in the Indian e-commerce market, Krishnamurthy assured that Walmart was committed to India and believed in Flipkart’s growth potential in the e-commerce sector.
Flipkart and Amazon had recently objected to some clauses in the new Foreign Direct Investment (FDI) rules introduced by the Government for the Indian e-commerce space. Equity participation in the entity, seller-related issues and exclusive deals were the points that were highlighted by the companies.
Krishnamurthy conveyed to the staff of Flipkart, that Walmart had entered into a long-term partnership with the Company considering the opportunities in the longer run, and is therefore, determined to remain unaffected by any hurdles in the short term, if any.
Walmart had bought 77 per cent stake in Flipkart last year, for $16 billion and Krishnamurthy assured that it was definitely not considering an exit.