-By ArdorComm News Network
August 1, 2023
Retail giant Walmart has finalized the purchase of Tiger Global’s remaining shares in Indian e-commerce startup Flipkart for $1.4 billion. This move marks Walmart’s further expansion of its stake in Flipkart, reinforcing its presence in the thriving Indian e-commerce market.
Tiger Global, a New York-headquartered hedge fund, had earlier cashed out a significant portion of its Flipkart shares, making an impressive gain of $3.5 billion from its initial $1.2 billion investment, according to sources familiar with the matter. The recent transaction now brings the Bengaluru-based Flipkart’s valuation to $35 billion, slightly lower than its previous valuation of $37.6 billion due to a reassessment following the split of payments startup PhonePe.
Walmart had acquired a 77% stake in Flipkart for $16 billion in 2018 and held around 72% of the company as of last year. Prior to this recent deal, Tiger Global’s stake in Flipkart stood at 4%.
With this significant investment, Walmart deepens its competition with Amazon’s local division in India. Despite the substantial investment, Flipkart is reportedly in need of additional funding and is likely to turn to Walmart to secure the majority of financing required for its next funding round.
Flipkart’s future fundraising endeavors are expected to remain promising, given its strong market position and the continued growth potential in India’s e-commerce sector.