September 26, 2023

Walmart Acquires Tiger Global’s Remaining Flipkart Stake in a $1.4 Billion Acquisitio

Walmart Boosts Stake in Flipkart with $1.4 Billion Share Purchase

Retail giant Walmart has recently purchased $1.4 billion worth of Flipkart shares from Tiger Global, further increasing its stake in the Indian e-commerce startup. This move comes as Walmart aims to solidify its position in the competitive Indian market and tap into the country’s booming e-commerce industry.

Tiger Global, which had previously sold most of its shares, made a staggering gain of $3.5 billion on its initial investment of $1.2 billion in Flipkart. Flipkart holds a special place for Tiger Global as it is the only Indian startup in which the investment firm had poured in over $1 billion. Overall, Tiger Global has invested over $6 billion in various Indian startups.

The recent transaction has valued Flipkart at $35 billion, which is slightly lower than its previous valuation of $37.6 billion. Walmart, in 2018, had acquired a 77% stake in Flipkart for a whopping $16 billion and currently holds a 72% share. However, despite having made a significant investment, Walmart finds itself in direct competition with another giant, Amazon, which established a similar business in India for a lower cost.

Nevertheless, Walmart remains confident in the future prospects of Flipkart and its growth potential in the Indian market. With India’s rapidly expanding e-commerce industry, Walmart sees Flipkart as a key player in capturing the country’s consumer base. The retail giant believes that Flipkart’s strong brand presence and customer loyalty will ultimately help it secure a strong foothold in India.

As Flipkart looks for further funding to fuel its expansion plans, analysts predict that the company may turn to Walmart for a majority of the financing in its next funding round. Walmart’s deep pockets and commitment to the Indian market make it an attractive option for Flipkart to secure the necessary funds.

By increasing its stake in Flipkart, Walmart has showcased its determination to establish a dominant position in the Indian e-commerce space. The battle between Walmart and Amazon for supremacy in the Indian market intensifies, promising fierce competition that will ultimately benefit consumers with better deals and a wider range of products.