HomeLatestWalmart acquires Tiger Global’s remaining stake in Flipkart for a sum of $1.4 billion.
Walmart acquires Tiger Global’s remaining stake in Flipkart for a sum of $1.4 billion.
July 30, 2023
Walmart recently spent $1.4 billion to acquire the remaining shares of Flipkart from Tiger Global, expanding its stake in the Indian e-commerce startup. This move comes as part of Walmart’s ongoing efforts to increase its presence in the Indian market.
Tiger Global, an early investor in Flipkart, has cashed in most of its shares earlier, making a substantial gain of $3.5 billion on its initial investment of $1.2 billion. This recent transaction with Walmart has further boosted the valuation of Flipkart, placing it at $35 billion.
In 2018, Walmart had already acquired a 77% stake in Flipkart for $16 billion, and as of last year, it held a 72% share in the company. Tiger Global, before the recent deal, had a 4% stake in Flipkart.
The investment in Flipkart has been a significant move for Walmart, considering it as a strategic move to compete with Amazon’s local division in India. Despite facing the need for additional funding, Flipkart remains optimistic about its future prospects in the Indian market.
With Flipkart now requiring another round of funding after depleting its capital from 2021, it is likely that the company will turn to Walmart to secure the majority of the financing needed for its next phase of growth.
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