US retail giant Walmart is paying 16 billion dollars (£11.8 billion) for a controlling stake in Indian retailer Flipkart, breaking into a fast-growing economy where it has struggled to establish a foothold.

Online sales have exploded in India over the past couple years, and Walmart and Amazon have been fighting hard to catch up with Flipkart.

Walmart said it will pay about 16 billion dollars for a majority stake in India’s leading e-commerce company (AP)
Walmart said it will pay about 16 billion dollars for a majority stake in India’s leading e-commerce company (AP)

Its delivery drivers, with their motorcycles and oversized backpacks, have become ubiquitous across the nation of 1.3 billion people. Online sales totalled 19.6 billion dollars (£14.7 billion) in India in 2017, according to reports, and are expected to grow far larger in 2018.

Walmart said it will own approximately 77% of Flipkart.

The founders of Flipkart, former Amazon employees Sachin Bansal and Binny Bansal, will own a piece of the remainder.