Walmart paid $1.4 billion to buy out hedge fund Tiger Global’s remaining holding of Flipkart shares as the retail giant further expands its stake in the Indian e-commerce startup. Besides Tiger Global, Flipkart co-founder Binny Bansal along with Palo Alto, CA-based private equity firm Accel, one of the earliest investors in the company, have also sold their stake to Walmart.
The departure of these stakeholders from Flipkart is a testament to the transformative power of e-commerce and strategic investments in India’s startup ecosystem.
Started in 2007, Flipkart has enabled millions of consumers, sellers, merchants, and small businesses to be a part of India’s digital commerce revolution, with a registered customer base of more than 400 million, offering over 150 million products across over 80 categories.
Walmart, which paid $16 billion for a 77% stake in Flipkart in 2018, held 72% share in the firm as of last year, according to an analysis by market intelligence firm Tracxn. Tiger Global, prior to the recent transaction, held a 4% stake in Flipkart.
The Flipkart Group is one of India’s leading digital commerce entities and includes group companies Flipkart, Myntra, Flipkart Wholesale, Flipkart Health+ and Cleartrip.
“We remain confident in the future of Flipkart and are even more positive about the opportunity in India today than when we first invested,” a Walmart spokesperson said.
