Walmart has purchased a $1.4 billion Tiger Global stake in Flipkart to strengthen its foothold in India. Walmart has acquired a share in Flipkart, India’s most popular e-commerce company. According to the Wall Street Journal, the corporation spent $1.4 billion to buy out hedge fund Tiger Global’s shareholding in the e-commerce startup.
Flipkart’s worth increased from almost $38 billion to $35 billion following the deal. Reuters’ request for comment was not immediately responded to by Walmart, Flipkart, or Tiger Global. Accel and Tiger Global, two early investors of Flipkart, were intending to sell their remaining ownership in the company to Walmart. Tiger Global owned around 4% of the firm, according to Reuters, citing an ET report.
In 2018, Walmart paid around $16 billion for a 77% interest in Flipkart. The business also revealed its plans for Flipkart to go public in the next four years.
Tiger Global’s withdrawal from Flipkart
Tiger Global was a significant investor in the Indian company. In 2009, it invested $8.6 million in Flipkart’s Series B round at a value of $42 million. According to Bloomberg, it later added $1.2 billion between 2010 and 2015. Their venture Private Investment Partners funds five through nine, the hedge fund and their long-only vehicle were used to make the transactions.
Later, the corporation began to sell its ownership in the e-commerce website. In 2017, Tiger Global sold a portion of its Flipkart investment to SoftBank Group Corp. According to the letter, the money manager’s investment helped the firm generate $3.5 billion in profits.
Walmart’s participation in Flipkart
Walmart’s entrance into Flipkart was signified with a $16 billion acquisition in 2018 for a 77% share in Flipkart. It has been stepping up its efforts to enter India’s expanding consumer market. Earlier in 2023, the company also established an internet commerce platform to host local retailers and small businesses. According to ET, the corporation now owns around 77% of Flipkart, a 5% increase.
“We are grateful for our partnership with the Flipkart team and the opportunity to invest in the company during its early stages of growth,” Tiger Global stated in the letter.
