Walmart buys $1.4 billion Tiger Global stake in Flipkart, report
Walmart’s investment in Flipkart, one of India’s leading e-commerce companies, showcases the global retail giant’s interest in tapping into the growing Indian market. Flipkart is known for its wide range of products, competitive pricing, and innovative approaches to serving Indian consumers.
By buying out Tiger Global’s investment in Flipkart for $1.4 billion, Walmart would likely strengthen its presence in India’s e-commerce sector and expand its operations in the country. Additionally, this investment could potentially enhance Flipkart’s resources, technology capabilities, and supply chain efficiency through Walmart’s global expertise and resources.
If the reported information is accurate, the transaction between Walmart and Flipkart resulted in a significant increase in the value of Flipkart. After Walmart’s investment and the buyout of Tiger Global’s stake, the value of Flipkart rose by $35 billion, reaching nearly $38 billion.
The involvement of private equity firms Accel and Tiger Global, as early backers of Flipkart, highlights the interest of multiple investors in the company’s growth and potential. As part of the deal, Tiger Global reportedly held around 4% of the company, and both firms were planning to sell their remaining stake to Walmart.
In 2018, Walmart indeed made a significant investment in Flipkart by acquiring a majority stake of 77% in the company for approximately $16 billion. This acquisition marked Walmart’s entry into the Indian e-commerce market and showcased its commitment to expanding its global footprint and competing with other major players in the online retail space.
Following the acquisition, Walmart expressed its plan to take Flipkart public within the next four years. The public listing would have offered an opportunity for Flipkart to raise additional capital from the stock market and potentially further its growth and expansion plans.
Public listings can also provide liquidity to existing shareholders, including investors like Walmart, who may choose to sell some of their holdings in the public offering. Additionally, going public allows a company to enhance its public image, access a larger pool of investors, and potentially increase its valuation.
Tiger Global’s initial investment of $8.6 million in Flipkart’s Series B round in 2009, at a valuation of $42 million, indicates the hedge fund’s early recognition of the potential of the e-commerce company. Subsequently, between 2010 and 2015, Tiger Global continued to invest in Flipkart, adding a substantial amount of $1.2 billion.
These investments were made through Tiger Global’s various funds, including Private Investment Partners funds five through nine, the hedge fund itself, and their long-only vehicle. By participating in multiple funding rounds, Tiger Global demonstrated its confidence in Flipkart’s business model and its commitment to supporting the company’s growth and expansion.
Tiger Global’s involvement as a prominent investor played a crucial role in helping Flipkart become one of India’s most successful e-commerce companies, with a significant market share and a valued position in the Indian startup ecosystem.
As with any investment activity, the information about funding rounds and investments can evolve over time, so it is essential to refer to reliable sources for the most updated and accurate details on the investment history between Tiger Global and Flipkart.
In 2017, Tiger Global sold a portion of its Flipkart stake to SoftBank Group Corp, another major player in the investment space. This transaction allowed Tiger Global to realize significant gains from its investment in Flipkart. According to the letter from the money manager, the stake sale helped Tiger Global generate an impressive $3.5 billion in gains.
Such a substantial return on investment demonstrates the success of Tiger Global’s early backing of Flipkart and the company’s ability to capitalize on the growth and success of the Indian e-commerce giant.
In 2018, Walmart made a significant entry into the Indian e-commerce market by acquiring a 77% stake in Flipkart for $16 billion. This acquisition marked Walmart’s largest-ever investment in an online retailer and represented its strategic move to tap into India’s growing consumer market.
Since then, Walmart has been actively expanding its presence in India. Earlier in 2023, the company launched an online retailing app that enables local stores and smaller merchants to list their products and reach a wider customer base.
As of the recent update, Walmart’s stake in Flipkart has increased to approximately 77%. This marks a 5% increment in Walmart’s ownership of the e-commerce company, indicating Walmart’s continued commitment to its investment in Flipkart and the confidence it has in the company’s growth and potential.
Tiger Global, as an early investor in Flipkart, expressed its gratitude for the partnership with the Flipkart team and the opportunity to invest in the company during its early growth phases. Tiger Global’s involvement as a key investor has been instrumental in Flipkart’s journey to becoming one of India’s leading e-commerce players.
As the business landscape is continually evolving, it’s essential to keep an eye on further announcements and updates from official sources to stay informed about any further developments related to Walmart’s stake in Flipkart and its expansion plans in India.
