According to a Reuters report citing The Wall Street Journal, Walmart has acquired hedge fund Tiger Global’s stake in the Indian e-commerce company Flipkart for $1.4 billion. This transaction has led to a slight decrease in Flipkart’s valuation, bringing it down to $35 billion from around $38 billion when the company sold shares to SoftBank, Walmart, and other investors in 2021.
Tiger Global had initially invested in Flipkart back in 2007 when it was launched by Sachin and Binny Bansal. Interestingly, the current CEO of Flipkart, Kalyan Krishnamurthy, had previously served as the managing director at Tiger Global.
According to an investor letter, Tiger Global invested approximately $1.2 billion in Flipkart between 2010 and 2015 and has since earned impressive profits of $3.5 billion.
In 2018, Walmart completed its acquisition of Flipkart for $16 billion, increasing its total stakes in the company to 77%.
Recent reports indicated that Accel and Tiger Global, two of Flipkart’s early backers, were in discussions to sell their remaining ownership to Walmart earlier this year.
Walmart’s Chief Financial Officer, John David Rainey, stated that Flipkart has shown strong growth potential and has the capacity to become a $100 billion business. He also mentioned that the success of Flipkart and PhonePe’s payments business is crucial for Walmart’s ambition of tripling its gross merchandise volume (GMV) in overseas markets to $200 billion within five years.
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