Walmart invested $3.5B to boost Flipkart stake in H1 2023
Walmart, Flipkart's parent company, has disclosed these details in a filing with the US Securities and Exchange Commission.
Walmart spent $3.5 billion to acquire shares fromholders who exited their positions in the first six months of 2023, filings with the US Securities and Exchange Commission showed on Friday.
Walmart now holds around 80% of the ecommerce giant.
Investors who sold their investments in Flipkart included, Accel Partners, and co-founder Binny Bansal. For Tiger Global's stake, Walmart paid nearly $1.4 billion, according to reports, a transaction that valued the ecommerce company at $35 billion, down from $38 billion as of 2021.
Even as Walmart has trimmed its investments in the South Asian market, it has maintained a bullish outlook on Flipkart's growth and potential.
In an earnings call last month, Walmart CFO John David Rainey said Flipkart has delivered "strong GMV and net sales growth as the core business continues to grow well."
"Flipkart’s consistent progress and performance reinforces our confidence in the long-term value of this business. India is leading the largest digital transformation in the world and Flipkart is the largest marketplace in India," Rainey added.
US-headquartered retailerreported strong growth for its international business for the second quarter of 2024, led by Walmex, China, and Flipkart.
The company’s international ecommerce business grew by nearly 26%