Walmart has paid $1.4 billion to buy out hedge fund Tiger Global’s stake in Flipkart.
Walmart has paid $1.4 billion (roughly Rs. 11,520 crore) to buy out hedge fund Tiger Global’s investment in e-commerce firm Flipkart, the Wall Street Journal reported on Sunday, citing a letter by the hedge-fund to its investors.
The transaction brings the value of the e-commerce firm to $35 billion from nearly $38 billion after it sold its shares to Japan’s SoftBank , U.S. retailer Walmart and other investors in 2021, the report said.
We remain confident in the future of Flipkart and are even more positive about the opportunity in India today than when we first invested,” the Walmart spokesperson said.
Earlier this year the Economics Times reported that private equity firms Accel and Tiger Global, two early backers of Flipkart, were in talks to sell their remaining stake in the company to Walmart.
Walmart acquired a majority stake of 77 percent in Flipkart for about $16 billion (roughly Rs. 1,31,662 crore) in 2018, and later that year said it could take the company public in four years.
In April last year, Reuters reported that Flipkart had internally raised its IPO valuation target by around a third to $60 billion (roughly Rs. 4,90,000 crore) – $70 billion (roughly Rs. 5,70,00 crore), and plans a US listing in 2023.
Earlier this year, Walmart confirmed that it had already paid the Indian government most of the nearly $1 billion (roughly Rs. 8,300 crore) in tax owed after digital payments company PhonePe, which the US retailer owns through Flipkart, shifted its headquarters from Singapore to India.
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