Walmart’s president and chief executive, Doug McMillon, said the investment in Flipkart was part of the company’s aim to invest in India’s fast-growing economy.
“India is one of the most attractive retail markets in the world, given its size and growth rate, and our investment is an opportunity to partner with the company that is leading transformation of e-commerce in the market,” McMillon said in a statement.
Walmart has agreed to a deal to buy a majority stake in Indian e-commerce giant Flipkart for $16 billion.
Both companies will keep their distinct brands and operating structures, Walmart said. A final close to the deal is expected to take place later this year.
Walmart’s investment in Flipkart includes $2 billion of fresh equity funding. Walmart said it will use a combination of newly issued debt and cash to finance the round.