According to a recent report from the Wall Street Journal, Walmart has acquired a significant stake in Flipkart. In this deal, Walmart paid $1.4 billion to buy out the investment made by hedge fund Tiger Global in Flipkart. This strategic move highlights Walmart’s interest in expanding its presence in the rapidly growing Indian e-commerce market.
After the deal, Flipkart’s value increased to $38 Billion from $35 Billion. As part of the deal, the private equity firms Accel and Tiger Global, who were among Flipkart’s initial supporters, intended to sell their remaining stake in the company to Walmart. According to a report from ET cited by Reuters, Tiger Global held around 4% ownership in the company.
In the year 2018, Walmart made a significant investment by acquiring a 77% majority stake in Flipkart for approximately $16 billion. As part of its strategic move, Walmart revealed its intention to take Flipkart public within the following four years.