The $10-billion surprise hiding inside Walmart’s acquisition of Flipkart

When Walmart Inc. paid $16 billion for control of India’s e-commerce pioneer Flipkart Online Services Pvt. last year, the American retail giant got a little-noticed digital payments subsidiary as part of the deal. Now the business is emerging as one of the country’s top startups, a surprise benefit for Walmart from its largest-ever acquisition.

PhonePe is an “underappreciated asset,” Edward Yruma, an analyst from KeyBanc Capital Markets, wrote in a recent research note. He estimated the business may be worth $14 billion to $15 billion, separate from Flipkart’s e-commerce operation. The service gained momentum by offering an array of services, including mutual funds, movie tickets and airline bookings. Earlier this year, it began using Bollywood star Aamir Khan in its advertising.

Walmart is still grappling with whether to bring in strategic or financial investors, according to one of the people familiar with the matter. While a strategic investor would likely be better for growth, senior Walmart executives are concerned that such backers typically want more voting rights, the person said. Walmart wants to use the lessons from PhonePe in other operations around the globe.

Singapore Singapore Latest News, Singapore Singapore Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Why Broadcom's Rumored $15-Billion Acquisition Of Symantec Makes SenseSymantec shares jumped almost 14% over trading on July 3rd following reports that it could potentially be acquired by Broadcom for $15 billion. The security software company saw its share price cross $25 for the first time since last May. Per Trefis, Symantec’s shares have a fair value of $21
Source: Forbes - 🏆 394. / 53 Read more »

IBM closes its $34 billion acquisition of Red HatIBM has officially closed its $34 billion acquisition of Red Hat in one of the largest U.S. tech deals ever. I remember when Red Hat was some super nerdy guy who occasionally popped up on CNBC who puzzled people for daring to create another operating system. $34b later... Time for Red Hat to put Trump in prison
Source: CNBC - 🏆 12. / 72 Read more »

Why Cisco's $2.6 billion acquisition of Acacia Communications is a brilliant strategic moveCisco's buy of Acacia is good for Cisco in every way. It's a little less clear why Acacia wanted to sell, but the trade war on China may be a factor.
Source: BusinessInsider - 🏆 729. / 51 Read more »