Walmart makes $16 bn investment in Flipkart, where NEPSE's total market capitalization stands at $14.66 bn; Will this rattle the e-commerce market in Asia

The huge population concentration in Chindia (China+India) has made it the most lucrative market for any multinational company. Many companies, now, are aggressively moving ahead to gain market share in Asian continent. To keep up in the race, Walmart has confirmed a $16 billion investment into Flipkart.

Walmart is the world’s largest retailer and no further explanation is needed to describe it. Similarly, Flipkart is the India’s biggest online retailer with 54 million active customers and projected gross merchandise value of $7.5 billion for 2018.

After the investment, Walmart will have 77% stake in Flipkart.

The market capitalization of NEPSE today stands at Rs. 1,582,341 million or $ 14.66 billion as per today’s exchange rate. This shows that the 77% of Flipkart’s value alone is approximately $ 2 billion higher than our country’s entire market capitalization.

This event marks the biggest ever investment made by Walmart and also the entrance of Western Giant in Asian Market.

The acquisition of Daraz by Alibaba and the investment of Walmart in Flipkart, show the growing attraction of large multinational toward Asian countries. Being a neighbouring country to India and also heavily dependent on them for everything, this event does bear countless opportunities for us.