Walmart Buys Tiger Global's Stake In Flipkart: Report It has reportedly paid $1.4 billion for the stake
By Teena Jose •
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US retailer Walmart has bought out hedge fund Tiger Global's investment in homegrown e-commerce giant Flipkart, according to a Wall Street Journal report. It has reportedly paid $1.4 billion for the stake. The New York-based hedge fund sent a letter to its investors, as per the report.
Flipkart is the only Indian startup in which Tiger Global had invested more than $1 billion, according to a person familiar with the matter. The U.S. investment giant, one of the earliest investors in Flipkart, has poured over $6 billion on Indian startups altogether. Tiger Global's investment in Flipkart supercharged the Indian startup community and put the South Asian nation's ecosystem on the world map.
The sale allows Tiger Global an opportunity to successfully exit its long-time investment in the Indian startup. The firm had initially put $8.6 million into Flipkart's Series B round in 2009 at a valuation of $42 million, before subsequently adding $1.2 billion between 2010 and 2015, according to the letter. The investments were made via their venture Private Investment Partners funds five through nine, the hedge fund, and their long-only vehicle.
Walmart had acquired a majority stake of 77 per cent in Flipkart for about $16 billion in 2018. It had said later that year that it could take the company public in four years. It was reportedly Walmart's largest acquisition.
"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 in a statement.
Walmart, which first paid $16 billion in 2018 for a 77% stake in Flipkart, has been accelerating its push into India's growing consumer market. The acquisition of the stakes from Tiger Global and Accel means Walmart will hold about 77% of Flipkart, up from 72% previously, according to Economic Times.
