Multinational retail giant Walmart has recently completed a significant financial transaction, purchasing hedge fund Tiger Global’s investment in the renowned Indian e-commerce firm, Flipkart, for a staggering USD 1.4 billion. This acquisition, reported by The Wall Street Journal based on information from Tiger Global’s letter to investors, places a valuation of USD 35 billion on Flipkart, highlighting the considerable scale of the investment and the confidence in the e-commerce company’s potential.
While a Walmart spokesperson confirmed the buyout to Reuters, they refrained from disclosing further details about the financial aspects of the deal. However, the spokesperson expressed optimism about Flipkart’s future and their positive outlook on the opportunities in India.
Tiger Global, the hedge fund selling its investment in Flipkart, has not provided an immediate response to Reuters’ request for comment on the transaction.
Earlier this year, there were reports that private equity firms Accel and Tiger Global, both early backers of Flipkart, were in discussions to sell their remaining stake in the company to Walmart. As per one of these reports, Tiger Global held approximately 4 per cent of the company.
Walmart initially acquired a 77 per cent majority stake in Flipkart for around USD 16 billion in 2018 and later expressed the possibility of taking the company public within four years of the acquisition.
