Walmart has made a significant move in the e-commerce space by increasing its stake in Flipkart. As revealed by The Wall Street Journal on Sunday, Walmart has acquired the entire stake of hedge fund Tiger Global in Flipkart for $140 million (approximately Rs 11,511.16 crore). This acquisition comes after private equity firms Accel and Tiger Global were reported to be in talks earlier this year to sell their remaining stake to Walmart.
Walmart Strengthens Position in Flipkart
In the year 2018, Walmart had acquired about 77% stake in Flipkart for a whopping $16 billion. Now, with the recent deal, Walmart further strengthens its position in the giant e-commerce company. Flipkart’s valuation has seen a slight decline from $3.8 billion to $3.5 billion after this transaction.
Flipkart’s Valuation Sees Slight Decline to $3.5 Billion After Walmart’s Recent Deal
Despite Walmart’s positive investment, Flipkart has faced challenges at the top level. In May, news emerged that three of its top-level employees were about to leave the company. These long-standing employees, with around 8-9 years of tenure at Flipkart, had previously worked at prominent companies like Hindustan Unilever and Yahoo. The resignations coincided with Flipkart’s announcement of an Employees’ Stock Options Plan (ESOP) buyback, which seemingly triggered the wave of departures.
