Walmart’s stake in Flipkart will have far reaching implications on the etail and retail ecosystem in India.

The takeover has potential to change the growth trajectory of e-commerce and also physical retail. Flipkart has 54 million active consumers, and with this influx of money it can double this base in a short period of time.

The existing consumer base would keep on enjoying the benefits of cost, convenience etc, and would get accustomed to it, and the new consumer base potentially would build up in deeper geographies of India. These new consumers probably would experience fashion through e-commerce before physical retail does it.

The deal presents a wonderful opportunity for niche e-commerce brands or sector-specific brands to create differentiated online experiences. However it will become increasingly difficult for smaller e-commerce players to sustain and grow on their own unless they focus on very specific niches.

This is a bitter sweet moment for India’s startup universe. It is also a validation of Flipkart’s business, processes and the team's capabilities. Walmart’s decision to retain the Flipkart leadership team and retain the brand paves the way for an interesting partnership model. Leveraging backend synergies will play out over time.

In the Indian market online is less than three per cent of the retail industry but is growing at 45 per cent.