According to reports, US retailer Walmart has acquired Tiger Global’s investment in domestic e-commerce behemoth Flipkart. For the stake, it reportedly paid $1.4 billion. According to a report, the New York-based hedge firm wrote to its investors.
A brief about Tiger Global’s stake in Flipkart is acquired by Walmart for $1.4 billion
The transaction valued Flipkart at $35 billion, down from $38 billion when it sold interests to SoftBank, Walmart, and other investors in 2021, according to a Wall Street Journal story that accessed the letter.
While Tiger Global and Flipkart have a long history together, this just happened. Tiger had made an investment in the business Sachin and Binny Bansal launched in 2007. Additionally, the report noted that Kalyan Krishnamurthy, the current CEO of Flipkart, had served as MD at Tiger.
According to the investor letter, Tiger invested approximately $1.2 billion in Flipkart between 2010 and 2015, and has since earned $3.5 billion in profits.
In 2018, Walmart paid roughly $16 billion to acquire a 77 percent share in Flipkart, giving it the majority. Later that year, it had stated that it may float the business in four years. It was Walmart’s biggest purchase.
John David Rainey, the chief financial officer of Walmart, has stated that the Flipkart marketplace has the potential to turn into a $100 billion business due to its strong growth. He claimed that Walmart’s ambition of tripling its gross merchandise volume (GMV) in overseas markets to $200 billion within five years would not be possible without the good success of Flipkart and the PhonePe payments business.
