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Walmart increases stake in Flipkart by buying out $1.4 bn worth shares

Walmart increases stake in Flipkart by buying out $1.4 bn worth shares
Walmart increases stake in Flipkart by buying out $1.4 bn worth shares

Walmart has reportedly acquired the remaining shares in Flipkart, owned by Tiger Global, worth $1.4 billion, solidifying its position in the Indian e-comm startup.

According to sources, Tiger Global made a significant gain of $3.5 billion on its initial investment of $1.2 billion in Flipkart, following the recent transaction. This deal marks Tiger Global's largest investment of over $1 billion in any Indian startup and reflects the hedge fund's strong support for Flipkart and the Indian startup community.

The valuation of Flipkart in this secondary shares sale was $35 billion, a decrease from the $37.6 billion valuation in a previous funding round due to internal adjustments after splitting from payments startup PhonePe.

For the record, Tiger Global played a significant role as a major investor in the Indian startup, Flipkart. Their first investment of $8.6 million was made during Flipkart's Series B round in 2009, when the company was valued at $42 million. Subsequently, between 2010 and 2015, Tiger Global further contributed $1.2 billion to Flipkart's growth.

Notably, as of last year, Walmart maintained a 72% ownership stake in Flipkart after acquiring a 77% share for $16 billion in 2018. Before the recent transaction, Tiger Global accounted for a 4% stake in Flipkart.

With the substantial investment, Walmart remains optimistic about Flipkart's future and views India's market as a promising opportunity. The retail giant is keen on continuing its support for Flipkart, which might involve participating in the next funding round to provide the majority of the required financing.

While Flipkart has been exploring market interest for additional funding, no deal has been reached yet due to a lower valuation. However, it is likely that Walmart will step in to back Flipkart in its future financial endeavors.



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Saloni Walimbe

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