Walmart Increases Stake in Flipkart to 80.5% with $3.5 Billion Investment

Walmart invests $3.5 billion, Walmart Increases Stake as ownership in Flipkart to 80.5%.

In New Delhi: A massive $3.5 billion acquisition this year, Walmart has substantially raised its investment in Flipkart to 80.5% in a key strategic move. This move is a reflection of Walmart’s aggressive foray into the booming Indian e-commerce market, which the company views to be crucial to its overall strategy.


Walmart Increases Stake


When some early financiers in Flipkart, including co-founder Binny Bansal, Tiger Global, and Accel chose to give up their interests to Walmart in July, this unprecedented event took place. According to information obtained from the market research company Tracxn, at the time of the sale, Tiger Global had around 4.1% of the stock, while Accel and Binny Bansal each held between 1.1% and 1.8% of the total.

In an unexpected turn of events, Walmart acknowledged in its statement with the U.S. Securities and Exchange Commission that a portion of the invested money was set aside for paying off debts due to particular PhonePe owners.

“By July 31, 2023, Walmart Increases Stake in Flipkart, Channeling $3.5 billion to Acquire Shares from Selected Flipkart Non-Controlling Interest The shareholders and Former Non-Controlling Interest Shareholders of PhonePe,” as stated in Walmart’s filing, highlights the company’s commitment to this strategic move.

The acquisition price paid to Tiger Global, which valued the business at an unbelievable $35 billion, served as the benchmark for Flipkart’s valuation. It’s interesting to note that in 2021, Walmart led a $3.6 billion finance round at a $37.6 billion valuation, working together with other notable investors to strengthen Flipkart’s financial position.

Walmart’s brave decision to increase its stake in Flipkart is a testimonial to its ongoing commitment in the ruthlessly competitive Indian e-commerce market. Walmart’s objective includes making Flipkart a publicly traded company in the upcoming years and stepping up its attempts to compete with both domestic and foreign companies. it’s including local businesses and global giants like Amazon, Reliance, and Tata.

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