Walmart buys $1.4 billion Tiger Global stake in Flipkart, report

Strengthening its presence in India, supermarket chain, Walmart bought $1.4 billion Tiger Global stake in Flipkart

Livemint
Updated31 Jul 2023, 10:17 AM IST
Customers shop at a Walmart store on May 18, 2023 in Chicago, Illinois. Walmart
Customers shop at a Walmart store on May 18, 2023 in Chicago, Illinois. Walmart(Getty Images via AFP)

Walmart has bought stake in one of India's most popular e-commerce firm, Flipkart. The company has paid $1.4 billion to buy out hedge fund Tiger Global's investment in e-commerce firm, reported Wall Street Journal on Sunday.

Also read: Flipkart and PhonePe could be $100 billion businesses in India, says Walmart CFO

After the transaction, the value of Flipkart rose $35 billion from nearly $38 billion. Walmart, Flipkart and Tiger Global did not immediately respond to Reuters' request for comment. Two early backers of Flipkart, private equity firms Accel and Tiger Global, were planning to sell their remaining stake in the company to Walmart. Tiger Global had around 4% of the company, reported Reuters citing ET report.

Also read: Global markets: US stocks advance on Walmart earnings, optimism over debt ceiling deal

In 2018, Walmart acquired a majority stake of 77% in Flipkart for aboutt $16 billion in 2018. The company also shared its plan of the public listing of Flipkart in next four years.

Tiger Global's exit from Flipkart

Tiger Global was one of the key investors in the Indian startup. It had initially put $8.6 million into Flipkart's Series B round in 2009 at a valuation of $42 million. Later, it added $1.2 billion between 2010 and 2015, reported Bloomberg. The investments were made via their venture Private Investment Partners funds five through nine, the hedge fund, and their long-only vehicle.

Also read: Walmart shareholding in fintech firm PhonePe drops to 85% from 89%

Later, the company began to reduce its stake in the e-commerce website. Tiger Global sold part of its Flipkart stake to SoftBank Group Corp in 2017. Its investment helped the company in generating $3.5 billion in gains, the money manager said in the letter, reported BB.

Walmart's entry in Flipkart

Walmart's entry in Flipkart was marked with tis first deal of $16 billion in 2018 for a 77% stake in Flipkart. It has been accelerating its push into India's growing consumer market. Earlier in 2023, the company had also launched an online retailing app to host local stores and smaller merchants. Now, the company hold around 77% stake in Flipkart, which is an increment of 5%, reported ET.

“We are grateful for our partnership with the Flipkart team and for the opportunity to invest in the company through early chapters in its growth,” Tiger Global said in the letter

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First Published:31 Jul 2023, 10:17 AM IST
HomeCompaniesNewsWalmart buys $1.4 billion Tiger Global stake in Flipkart, report

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