Business
Tiger Global Sells Remaining Stake In Flipkart To Walmart For $1.4 Billion
Source: Firstpost
Walmart Inc. has strengthen its position in Flipkart by acquiring Tiger Global Management's remaining stake in the Indian retailer for $1.4 billion.
According to a letter sent by Tiger Global to investors, the transaction valued Flipkart at $35 billion, lower than its previous valuation of nearly $38 billion in the 2021 funding round, according to a Wall Street Journal report.
In a separate move, venture capital firm Accel also sold its 1 per cent stake in Flipkart to Walmart.
In addition to Walmart's acquisition, venture capital firm Accel also sold its 1% stake in Flipkart to Walmart, as reported by the Economic Times.
This sale allows Tiger Global to successfully exit its long-time investment in Flipkart.
The firm initially invested $8.6 million in Flipkart's Series B round in 2009, with a valuation of $42 million.
Over the years, Tiger Global added $1.2 billion in investments through various funds and vehicles.
In 2017, Tiger Global sold a portion of its stake in Flipkart to SoftBank Group Corp, and a year later sold more to Walmart. According to the letter to the investors, these investments in Flipkart have resulted in gains of $3.5 billion.
Walmart, which acquired a 77 per cent, take in Flipkart for $16 billion in 2018, has been aggressively expanding its presence in India's consumer market.
Earlier this year, its local payments business launched an online retailing app that will feature local stores and smaller merchants.
Following the acquisition of stakes from Tiger Global and Accel, Walmart's ownership in Flipkart will increase to approximately 77 per cent, up from the previous 72 per cent, Economic Times reported.
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