Flipkart sale to Walmart: Binny Bansal to stay, this is who will leave

As Flipkart inches closer to sell a majority stake to global retail giant Walmart, reports have emerged that Sachin Bansal, co-founder and chairman of the e-tailer may quit after the deal is done and dusted. "Walmart is insistent on retaining only one of the two founders as they fine-tune the deal, said a Times of India report quoting people familiar with the negotiations. 

"Sachin is most likely to leave and Binny will stay. Walmart has to make sure it buys off his shares, which is what is being worked out," the report added. The Bansals, who are not related by blood, collectively own around 10 per cent stake in the country's most valued internet company. Meanwhile, the e-tailer completed another round of buybacks of its shares valued at $350 million (Rs 2,275 crore) from its investors, according to its regulatory filing on Thursday.

"The buyback will enable the e-commerce giant to bargain for a favourable deal with the US-based retail behemoth Walmart, which is eyeing a majority or controlling equity stake in it to foray into the multi-billion dollar Indian retail space," a market analyst told IANS.

The buyback also paves way for the Singapore-registered Flipkart to become a private entity and sell its stake to bidders like Walmart at higher value.

"The company's valuation is estimated to be $18 billion, which is based on the buyback price paid to investors, including premium," added the analyst.

The decade-old company had raised a whopping $6.11 billion till date since 2009 through 14 rounds of funding, reported IANS.