Walmart buys Tiger Global's remaining stake in Flipkart for $1.4B: Report
The current deal is expected to strengthen Walmart's commitment in helping Flipkart with greater exposure to the global digital-consumer market.
US-based retail chainhas acquired the remaining shares of ecommerce platform , owned by investor Tiger Global, for $1.4 billion, The Wall Street Journal reported on Monday.
The transaction valued Flipkart at $35 billion, down from about $38 billion when it sold shares to SoftBank and other investors in 2021, the report said.
Walmart acquired a 77% stake in Flipkart for close to $16 billion in 2018, its largest acquisition to date. The current deal is expected to strengthen Walmart's commitment to offering Flipkart greater exposure to the global digital-consumer market.
Walmart confirmed Tiger Global's exit to YourStory.
"We value Tiger Global's involvement and support over the last several years. We remain confident in the future of Flipkart and are even more positive about the opportunity in India today than when we first invested. We continue to be impressed with Flipkart's progress and remain focused on building a healthy, sustainable and profitable business for the long term, ensuring Flipkart continues to grow in an emerging and dynamic market," a Walmart spokesperson said.
Tiger Global's exit said to have concluded recently has resulted in total gains of $3.5 billion over the past few years of phased selloff, The Economic Times reported. This is the most the global investor has generated from a single company and also the highest profit it has managed from an Indian internet firm, the report added.
Recently, Flipkart paid nearly $700 million as part of the one-time payout for the Employee Stock Ownership Plan (ESOP) from the separation of PhonePe and Flipkart. Multiple current and former employees reported receiving the payout on July 14. The payout will benefit a total of 24,000 eligible individuals, Flipkart confirmed to YourStory.
(The story has been updated with Walmart's comment)
Edited by Megha Reddy