Walmart pays $1.4 billion to buy Tiger Global’s remaining Flipkart stake


Share post:

Walmart paid $1.4 billion to buy out Tiger Global’s remaining holding of Flipkart shares as the retail giant further expands its stake in the Indian e-commerce startup.

The transaction took place in recent days and Tiger Global, which has cashed most of its Flipkart shares earlier, overall made a return of $3.5 billion on an investment of $1.2 billion, the New York-headquartered hedge fund told investors, according to a person familiar with the matter. Wall Street Journal first reported on the deal.

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 has poured over $6 billion on Indian startups altogether.

The secondary Flipkart shares sale valued the Bengaluru-headquartered at $35 billion. Flipkart was valued at $37.6 billion in a funding round in 2021, but has since internally cut its worth by about $5 billion following the split of payments startup PhonePe.

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.

An alternative perspective on Walmart’s over $20 billion investment in Flipkart could be that the American giant has bought shares in a company that competes with the local division of Amazon, which was able to establish a similar business in-house for less than $7 billion.

The funding faucet for Flipkart probably won’t be turned off in the near future.

Flipkart has largely depleted the capital it raised in 2021 and now faces the need for another round of funding. Flipkart has gauged market interest in recent months, but no deal was struck due to a lower valuation. As such, it seems likely that it will turn back to Walmart to secure the majority of the financing needed for the next round.

Source link

Lisa Holden
Lisa Holden
Lisa Holden is a news writer for LinkDaddy News. She writes health, sport, tech, and more. Some of her favorite topics include the latest trends in fitness and wellness, the best ways to use technology to improve your life, and the latest developments in medical research.

Recent posts

Related articles

Apple Podcasts adds original programming from Apple Music, Apple News+ and other apps

As Google is shifting its podcast listeners over to YouTube Music, Apple today announced an upgraded experience...

X (formerly Twitter) is worst for disinformation, per EU analysis

X (formerly Twitter) has been called out in the European Union for having the worst ratio of...

Onchain leverage trading platform Avantis Labs raises $4M seed round led by Pantera Capital

Avantis Labs, a decentralized finance (DeFi) derivatives ecosystem, has raised $4 million in a seed funding round...

Crediverso takes on legal after $3.5M capital infusion

Crediverso, a company that launched at TechCrunch Disrupt 2020, raised $3.5 million in what founder and CEO...

Uber Eats and Getir ink tie-up in Europe for speedy grocery deliveries

Uber Eats and quick commerce player Getir have inked a grocery delivery partnership, starting in the UK....

Pan-African contrarian investor P1 Ventures reaches $25M first close for its second fund

Pan-African venture capital firm P1 Ventures has reached the first close of its second fund at $25...

GIC in talks to lead $40 million funding in India’s Vegrow

GIC is in talks to invest in the Indian startup Vegrow, which runs a business-to-business marketplace for...

Spotify launches Jam, a real-time collaborative playlist controlled by up to 32 people

Spotify is today introducing its latest social feature, Jam, which allows multiple people to blend their own...