by Bengaluru, July 26, 2023 — Walmart, the American multinational retail corporation, has agreed to buy out Tiger Global’s stake in Flipkart for $1.4 billion.
The deal, which is still subject to regulatory approvals, will give Walmart a 92% stake in Flipkart. Tiger Global will sell its entire stake in the company, which is currently valued at $24.9 billion.
Walmart first invested in Flipkart in 2018 for $16 billion. The company has since invested an additional $1.4 billion in the company.
The latest deal is a sign of Walmart’s commitment to the Indian e-commerce market. Flipkart is the leading e-commerce platform in India, and Walmart is eager to expand its presence in the country.
“We are excited to further our investment in Flipkart and to support the company’s continued growth,” said Doug McMillon, CEO of Walmart. “Flipkart is a leader in the Indian e-commerce market, and we believe that the company has the potential to be even more successful in the years to come.”
The deal is also a sign of Tiger Global’s exit from the Indian e-commerce market. Tiger Global is one of the most active investors in the Indian startup ecosystem, but it has been facing some challenges in recent months.
The Indian e-commerce market is highly competitive, and it has been difficult for some startups to turn a profit. Tiger Global has also been criticized for its aggressive investment style.
The sale of Tiger Global’s stake in Flipkart is a significant exit for the company. It is also a sign of the changing dynamics in the Indian e-commerce market.
