US-based retail giant Walmart has completed the acquisition of the remaining shares of India’s leading ecommerce platform, Flipkart, from investor Tiger Global for a reported sum of $1.4 billion. The news broke on Monday, and the transaction is said to value Flipkart at $35 billion, a slight decrease from its previous valuation of about $38 billion in 2021 when it sold shares to SoftBank and other investors.
The deal marks a significant milestone for both Walmart and Flipkart, as it further solidifies Walmart’s commitment to the Indian ecommerce market and provides Flipkart with greater exposure to the global digital-consumer market.
Walmart had previously acquired a massive 77% stake in Flipkart for approximately $16 billion in 2018, which was the largest acquisition the retail giant had ever made. The recent transaction signifies Walmart’s continuous belief in the potential growth of Flipkart and the lucrative opportunities in the Indian market.
Upon confirming Tiger Global’s exit, a Walmart spokesperson expressed their appreciation for the investor’s involvement and support over the years. The spokesperson emphasized their confidence in Flipkart’s future and their unwavering focus on building a healthy, sustainable, and profitable business for the long term. Walmart believes that Flipkart will continue to thrive in the dynamic and emerging Indian market.
For Tiger Global, their exit from Flipkart has been remarkably lucrative. According to The Economic Times, the global investor has gained a staggering $3.5 billion through a series of phased selloffs over the past few years. This makes it the largest profit the firm has ever generated from a single company and also sets a record for the highest profit achieved from an Indian internet firm.
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Additionally, in a separate development, Flipkart recently made a one-time payout of nearly $700 million for its Employee Stock Ownership Plan (ESOP) following the separation of PhonePe and Flipkart. According to YourStory, a total of 24,000 eligible individuals, including current and former employees, received the payout on July 14.
With the completion of this deal, Walmart strengthens its position in the fiercely competitive Indian ecommerce market and reaffirms its confidence in Flipkart’s potential for sustained growth. The acquisition is set to have a significant impact on the digital commerce landscape in India, with both companies looking forward to future success in this thriving market.
