Retail giant Walmart has reportedly paid $1.4 billion to acquire VC form Tiger Global's remaining shares in the e-commerce major. According to a report in Wall Street Journal, Walmart has paid the money to boost Flipkart's stake.
"Purchase of shares from Tiger Global values the Indian e-commerce company at about $35 billion," the report said late on Sunday.
Walmart purchased Tiger Global's remaining holding in Flipkart to further cement its control of the Indian e-commerce giant. Tiger Global made an overall gain of $3.5 billion on an investment of $1.2 billion, reports mentioned.
Besides Tiger Global, Flipkart co-founder Binny Bansal along with Accel, one of the earliest investors in the company, have bid farewell to Flipkart by selling their stake to Walmart.
In 2018, the world took notice as global retail giant Walmart decided to acquire a majority stake in Flipkart for a staggering $16 billion, underscoring the immense potential of India's startup ecosystem. Despite the acquisition, co-founder Binny Bansal chose to retain a small percentage of his stake in Flipkart, demonstrating his belief in the company's vision and future prospects.
As of today, Binny Bansal has officially divested his remaining stake in Flipkart, drawing the curtains on his journey with the company he co-founded.
Flipkart was earlier valued at $37.6 billion in a 2021 funding round. Walmart had 72 per cent share in Flipkart as reported last. Tiger Global held a 4 per cent stake in the e-commerce leader.
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. Their journeys serve as inspirations to aspiring entrepreneurs and investors, underscoring the potential for remarkable returns and success in the fast-paced world of digital commerce.
Flipkart's payout to employees
Last month, Flipkart began a "one-time discretionary" cash payment of $700 million to employees following its separation from fintech firm PhonePe.
In an email to employees, Flipkart Group chief executive Kalyan Krishnamurthy said, "We have exciting times ahead, and as we continue to grow across businesses, I look forward to your continued dedication and determination to bring about the future that we envision and scale new heights together."
The PhonePe Group was acquired by the Flipkart Group in 2016.
The Flipkart Group is one of India's leading digital commerce entities and includes group companies Flipkart, Myntra, Flipkart Wholesale, Flipkart Health+ and Cleartrip.
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.
