Walmart acquires Tiger Global’s entire stake in Flipkart for $1.4 billion

American retail giant Walmart has acquired US investment firm Tiger Global’s entire stake in e-commerce firm Flipkart for $1.4 billion at an enterprise valuation of $35 billion, sources in the know told PTI.

Flipkart was valued at $37.6 billion during the last funding round in 2021.

“Walmart has acquired a stake of Tiger Global for about $1.4 billion. The transaction took place at an enterprise valuation of around $35 billion,” the source said. Tiger Global was one of the initial investors in Flipkart in 2009.

Walmart statement

A Walmart spokesperson confirmed that the retail giant has indeed acquired additional shares of Flipkart from Tiger Global without sharing the financial details of the deal.

“We value Tiger Global’s involvement and support over the past several years. We remain confident in the future of Flipkart and are even more positive about the opportunity in India today than when we first invested.

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“We continue to be impressed with Flipkart’s progress and remain focused on building a healthy, sustainable and profitable business for the long term, ensuring Flipkart continues to grow in an emerging and dynamic market,” the spokesperson said.

Initial investor

Tiger Global initially invested $9 million in Flipkart in 2009 and gradually became one of the biggest shareholders in the firm, with a cumulative investment of $1.2 billion by 2017. Even after selling a significant stake to Walmart in 2018, Tiger Global re-invested in Flipkart in 2021 to enhance its stake.

The firm has now exited Flipkart after selling around 4 per cent it held in the e-commerce firm. According to sources, venture capital firm Accel (formerly Accel Partners) has also sold its 1 per cent stake in Flipkart to Walmart for about $350 million.

(With agency inputs)