Walmart’s potential $16-billion investment in online retailer Flipkart has left a group of people worried, reports ET Bureau.
The All India Online Vendors Association (AIOVA) which represents more than 3,500 sellers selling on ecommerce marketplaces, has written to the Competition Commission of India regarding the application of Walmart to acquire 77% in Flipkart.
“Walmart has considered the B2B market of pan-India as the relevant market of the proposed transaction,” read the letter, seen by ET.
“While Walmart is currently not present in the India ecommerce market, if the deal is approved, Walmart will control the market on Flipkart.com via B2B company.”
This, they believe, will affect the business of thousands of sellers who are active on the Flipkart marketplace and may also lead to closure of their businesses.