The industry is abuzz with the deal finalization about the acquisition of Flipkart by Walmart.
The IT department has also asked Flipkart about details of the Dollars 16 billion (Rs 1.05 lakh crore) deal.
Founded in 2007, Flipkart has led India's eCommerce revolution.
In a recent development, Flipkart co-founder Sachin Bansal has exited the business by selling his entire stake of over 5 per cent for around Rs 7,000 crore to Walmart.
Its first investment in Flipkart came at a time when the Bengaluru-based startup was struggling to raise money. The deal is expected to transform one of the world's fastest growing e-commerce markets, which is expected to outperform the U.S. to become the second largest in the next fifteen years. Binny Bansal will still remain invested in the company as the Group Chief Executive Officer, along with other shareholders like Chinese Internet conglomerate Tencent, Microsoft Corp. and investment firm Tiger Global. Walmart has revealed it will pay $16bn for a 77 percent stake in the Indian e-retailer.
Pre-deal, Tiger Global Management held about 20 percent stake in Flipkart.
When Walmart paid $3.3bn in 2016 to buy Jet.com, the United States retail giant turned to an outside legal team led by Fenwick & West and Gibson Dunn & Crutcher.
The Walmart-Flipkart transaction should therefore now "get the regulators to sit up and take notice, given that the principle of FDI not being permitted for FDI in multi-brand retail is there", TP Pratap, co-founder at Qwikcilver Solutions, said in a phone interview.
"He urged Flipkart team to continue with the momentum, Sachin said, ".But I'll be watching and cheering from the outside? Despite having a superior technology and operational set-up, Amazon is still second to Flipkart in terms of market share. It will give Walmart entry into the emerging Indian e-commerce market, where it will compete with rival Amazon for supremacy. "This investment aligns with our strategy and our goal is to contribute to India's success story, as we grow our business".
The retailer sees India's young population, a growing digital payment ecosystem and an overall positive economic sentiment as an advantage to the company. "Through the last 10 yrs one thing which really held both of us together was the shared values and making sure we do the right thing for customer always", he said adding both ensured that they thought big and audacious.