Tiger Global’s remaining shares in Flipkart purchased by Walmart for $1.4 B

Ila Dhond31/07/2023

168 1 minute read

This photo taken on May 9, 2018 shows Walmart CEO Doug McMillon (R) speaking next to Flipkart co-founder and CEO Binny Bansal at an event in Bangalore, as a deal was announced for Walmart to buy a stake in Flipkart. - US retail behemoth Walmart will buy a 77 percent stake in Indian e-commerce giant Flipkart for $16 billion, Walmart said in a statement May 9. (Photo by - / AFP) (Photo credit should read -/AFP/Getty Images)

Tiger Global’s shares in Flipkart were purchased by Walmart for $1.4 billion. With this action, Walmart has increased its ownership of the e-commerce company based in Bengaluru.

Tiger Global reportedly received a $3.5 billion return on its $1.2 billion investment following the transaction. According to media reports, Tiger Global owned 4.3% of Flipkart.

The Wall Street Journal, which broke the news first, estimated Flipkart’s value at $35 billion. Following a $3.6 billion funding round in 2021 from GIC, the Canada Pension Plan Investment Board, and SoftBank, among others, Flipkart was valued at $37.6 billion.

In August 2018, Walmart paid approximately $16 billion for a 77% majority stake in Flipkart with the intention of going public in the following years.

Flipkart and the online payment system PhonePe underwent a separation process and became separate legal entities in December 2022. Due to this hive-off, PhonePe, which was previously owned and run by a Singapore entity, became a fully India-domiciled company. In the end, PhonePe will be an independent Indian company after a partial separation that started in December 2020.

In its most recent round, which is anticipated to reach a close of $1 billion, PhonePe has raised a total of $850 million in primary funding since it split off. Pre-money valuation for the new capital was $12 billion.

Flipkart made news earlier this month when it announced that it would pay its employees $700 million in cash to make up for the value loss brought on by the PhonePe split.

Although Flipkart withheld information regarding the precise number of employees receiving this compensation, an earlier report from ET suggested that more than 24,000 employees, including former Flipkart and Myntra employees, would be qualified for the cash payout.