Walmart has acquired Tiger Global’s stakes in Flipkart for $1.4 billion. WIth this move, Walmart has expanded its stake in the Bengaluru-based e-commerce firm.
Following the transaction, Tiger Global reportedly has overall made a return of $3.5 billion on an investment of $1.2 billion. Tiger Global held about 4.3% stakes in Flipkart, as per Fintrackr’s estimates.
Wall Street Journal, which reported the development first, reported that the deal valued Flipkart at $35 billion. Flipkart was valued at $37.6 billion following a $3.6 billion worth funding round in 2021 from GIC, Canada Pension Plan Investment Board, and SoftBank, among others.
Walmart acquired a majority stake of 77% in Flipkart for about $16 billion in August 2018 with a plan for public listing in the coming years.
In December 2022, Flipkart and the digital payments platform PhonePe underwent a separation and became separate entities. As a result of this hive-off, PhonePe transformed into a fully India domiciled company, whereas it was previously owned and operated by a Singapore entity. This process began with a partial separation in December 2020 and culminated in PhonePe becoming an independent Indian company.
Also Read: Tiger Global raises $2.7 Bn, falls short of target by more than 50%
Since hive off, PhonePe has raised a total of $850 million in primary capital in the current round, which is expected to close at $1 billion. The fresh funds were raised at a pre-money valuation of $12 billion.
Earlier this month, Flipkart made headlines as it initiated a cash payout of $700 million to its employees to compensate for the loss of value resulting from the PhonePe separation.
Although the exact number of employees receiving this compensation was not disclosed by Flipkart, an earlier ET report indicated that more than 24,000 employees, including former Flipkart and Myntra staff, would be eligible for the cash payout.
