Based on recent news from the individuals close to the matter, the founders of the e-commerce giant Walmart-Flipkart could face a fine of $1.5bn. Recently, Flipkart confirmed the ongoing investigation from ED.
This comes after Walmart’s $16Bn controlling stakes investment @ $38Bn valuation in 2018. Modi government has been very vocal and actionable on their stand against the exploitation of local retailers and the recent probe into Walmart-Flipkart comes as part of an effort to support their narrative. To top their efforts, the government is also thinking about consumer protection laws making e-commerce platforms liable for the products they sell.
This development comes at a time when the giant is preparing for IPO next year and is already surrounded by fierce ever-rising rivalry from Amazon and Reliance’s Jio Mart.
How this would finally unfold would be critical to the company IPO plan but steps to ensure the protection of local retailers is critical.
What are your thoughts?
Should India extend their FDI tightening in the education tutoring sector similar to what China is doing?
Would any tightening of FDI at this time mean a loss in possible opportunity as investors divert from China?