Walmart

Walmart has paid $1.4 billion to buy out hedge fund Tiger Global's investment in Flipkart

Walmart has paid US$1.4 billion (approx Rs. 11,520 crore) to buy out hedge fund Tiger Global's investment in e-commerce firm Flipkart, the Wall Street Journal reported on Sunday, citing a letter by the hedge fund to its investors. The transaction brings the value of the e-commerce firm to US$35 billion from nearly US$38 billion after it sold its shares to Japan's SoftBank, U.S. retailer Walmart, and other investors in 2021, the report said.

After the transaction, the value of Flipkart rose to US$35 billion from nearly US$38 billion. Walmart, Flipkart, and Tiger Global did not immediately respond to Reuters' request for comment. Two early backers of Flipkart, Accel and Tiger Global, were planning to sell their remaining stake in the company to Walmart. Tiger Global had around 4% of the company, reported Reuters citing an ET report.

"We remain confident in the future of Flipkart and are even more positive about the opportunity in India today than when we first invested," stated the Walmart spokesperson, highlighting the company's belief in Flipkart's potential.

Walmart's entry into Flipkart was marked with its first deal of US$16 billion in 2018 for a 77% stake in Flipkart. It has been accelerating its push into India's growing consumer market. In 2023, the company launched an online retailing app to host local stores and smaller merchants. Now, the company holds around 77% stake in Flipkart, which is an increment of 5%, reported ET.

“We are grateful for our partnership with the Flipkart team and for the opportunity to invest in the company through early chapters in its growth," Tiger Global said in the letter.

In April last year, Reuters reported that Flipkart had internally raised its IPO valuation target by around a third to US$60 billion (roughly Rs. 4,90,000 crore) - US$70 billion (roughly Rs. 5,70,00 crore) and plans a US listing in 2023.

Earlier this year, Walmart confirmed that it had already paid the Indian government most of the nearly US$1 billion (approx Rs. 8,300 crores) in tax owed after digital payments company PhonePe, which the US retailer owns through Flipkart, shifted its headquarters from Singapore to India.