Walmart buys $1.4 billion Tiger Global stake in Flipkart

According to a report, Walmart has acquired a stake in Flipkart which is one of India's most popular e-commerce firms, by purchasing the hedge fund Tiger Global's investment for $1.4 billion. Following the transaction, the valuation of Flipkart increased by approximately $35 billion, reaching a total value of nearly $38 billion. When Reuters reached out for comment, neither Walmart, Flipkart, nor Tiger Global responded immediately. Private equity firms Accel and Tiger Global, who were early supporters of Flipkart, intended to sell their remaining stake in the company to Walmart, Tiger Global held approximately 4% of the company. In 2018, Walmart purchased a significant 77% stake in Flipkart for approximately $16 billion. Furthermore, the company revealed its intention to take Flipkart public within the next four years.

Tiger Global's exit from Flipkart

Tiger Global played a significant role as a key investor in the Indian startup, Flipkart. It first invested $8.6 million during Flipkart's Series B round in 2009 when the company was valued at $42 million. Over the years, Tiger Global continued to invest in Flipkart, contributing a total of $1.2 billion between 2010 and 2015. These investments were made through various channels, including their venture Private Investment Partners funds five through nine, the hedge fund, and their long-only vehicle, as reported by Bloomberg.

After some time, Tiger Global decided to decrease its ownership in the e-commerce website, Flipkart. In 2017, they sold a portion of their Flipkart stake to SoftBank Group Corp. As a result of this strategic move, Tiger Global managed to generate $3.5 billion in gains, as mentioned in the letter reported by BB (presumably Bloomberg).

Walmart's entry into Flipkart

In 2018, Walmart made its initial foray into Flipkart by investing $16 billion for a significant 77% stake in the company. Since then, Walmart has been actively expanding its presence in India's thriving consumer market. In 2023, the company even launched an online retailing app to support local stores and smaller merchants.

for now, Walmart's stake in Flipkart has increased to approximately 77%, indicating a 5% increment. Expressing their sentiments, Tiger Global, a key investor, stated in a letter that they are grateful for their partnership with the Flipkart team and appreciate the opportunity to have invested in the company during its early growth stages.