Shillong, July 31: Retail giant Walmart has recently made a significant move in the e-commerce market by paying $1.4 billion to acquire VC firm Tiger Global’s remaining shares in Flipkart, one of India’s leading digital commerce entities.
According to the Wall Street Journal report, this strategic investment by Walmart aims to boost Flipkart’s stake, valuing the Indian e-commerce company at an impressive $35 billion.
Walmart’s decision to purchase Tiger Global’s remaining holding in Flipkart further solidifies its control over the Indian e-commerce giant. This move proved beneficial for Tiger Global as they made an overall gain of $3.5 billion on their initial investment of $1.2 billion.
Previously, in a 2021 funding round, Flipkart’s valuation was reported at $37.6 billion. With this acquisition, Walmart now holds a 72% share in Flipkart, while Tiger Global retains a 4% stake in the e-commerce leader.
In a recent development, Flipkart initiated a “one-time discretionary” cash payment of $700 million to its employees following its separation from fintech firm PhonePe. Flipkart Group’s Chief Executive, Kalyan Krishnamurthy, expressed optimism about the company’s future growth and encouraged employees to continue striving for success.
The Flipkart Group, which began in 2007, has played a pivotal role in India’s digital commerce revolution. It has enabled millions of consumers, sellers, merchants, and small businesses to participate in the thriving e-commerce ecosystem. With a registered customer base of over 400 million and offering a vast array of products across 80 categories, Flipkart continues to be at the forefront of the Indian e-commerce industry.
Additionally, the Flipkart Group includes other prominent group companies such as Myntra, Flipkart Wholesale, Flipkart Health+, and Cleartrip, further strengthening its position as a major player in the digital commerce space.