July 30, 2021
Walmart has completed a $1.4 billion buyout of hedge fund Tiger Global’s investment in e-commerce firm Flipkart, according to a letter sent by Tiger Global to its investors, as reported by the Wall Street Journal.
- The transaction value is $1.4 billion.
- Walmart spokesperson confirmed the transaction but did not disclose financial specifics.
- The buyout results in a valuation of $35 billion for Flipkart.
“We remain confident in the future of Flipkart and are even more positive about the opportunity in India today than when we first invested,” stated the Walmart spokesperson.
Response from Tiger Global
Tiger Global did not immediately respond to Reuters’ request for comment regarding the buyout.
Earlier this year, the Economics Times reported that private equity firms Accel and Tiger Global, who were early backers of Flipkart, were in discussions with Walmart to sell their remaining stake in the company.
- Tiger Global held approximately 4% of Flipkart, according to the Economic Times report.
In 2018, Walmart acquired a majority stake of 77% in Flipkart for around $16 billion. At the time, Walmart also mentioned the possibility of taking the e-commerce firm public within four years.
Reporting and Credits
Reporting by Yana Gaur and Urvi Dagar in Bengaluru; Additional reporting by Bharat Govind Gautam; Editing by Kim Coghill, Chris Reese, and Nivedita Bhattacharjee.
Our Standards: The Thomson Reuters Trust Principles.