Walmart's investment includes USD 2 billion of new equity funding that would help Flipkart to accelerate its growth pace amid stiff competition from Amazon, which is also pumping in huge funds into its India operations.
The fast-growing e-commerce market also has a number of smaller and niche players like SoftBank and Alibaba-backed Paytm Mall, Snapdeal and ShopClues.
Interestingly, there were speculations that Amazon had also made a bid for Flipkart, even though neither of the companies confirmed it.
"I am confident that this is one of the best decisions our company has made - we believe in India, have seen growth in India in every way. This is the best place to be anywhere in the world," McMillon, who is also Walmart President, said.
The Walmart chief stated that the values of the two companies were "very much aligned", according to sources.
"Respect in people, striving for excellence, acting with integrity, doing things we can be proud of, and the customer focus," he said citing some of the shared values of the two firms.
On the synergies of the deal, McMillon said the Bengaluru-based company can take advantage of Walmart's resources supply chain and retailing expertise -- while Flipkart could share its experience and expertise in building an entire ecosystem around online commerce business.
"We understand it is not just an e-commerce business Flipkart, Myntra, Jabong and the fashion business, PhonePe, EKart. This is a very special ecosystem, we get that and are excited about what this could become in the future.
"We hope we learn from you how to build an ecosystem, more about innovation and payments we will help with sourcing, supply chain expertise," he said.
Besides, the Walmart CEO is said to have assured Flipkart employees that it would work to make a big difference in food safety, supporting kirana stores and creating jobs in India.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)