Walmart buys Tiger Global's stake in Flipkart for $1.4 billion
Walmart has acquired Tiger Global's $1.4 billion stake in Indian e-commerce firm Flipkart. The US retail giant had previously purchased a 72% stake in Flipkart for $16 billion in 2018 and plans to publicly list the company within four years. Accel and Tiger Global, two early backers of Flipkart, have been planning to sell their remaining stake in the company to Walmart.
Investment in Flipkart was profitable for Tiger Global
Tiger Global was one of the key investors in Flipkart, initially investing $8.6 million in 2009 and adding $1.2 billion between 2010 and 2015. The hedge fund sold part of its stake to SoftBank Group Corp in 2017. Its investment generated $3.5 billion in gains. Flipkart is the only Indian start-up where the US investment giant had invested over $1 billion.
Local traders fear Walmart's market dominance
Walmart's acquisition of Tiger Global's stake in Flipkart will give it greater control over the company's operations and supply chain. This could lead to lower prices for consumers but has also raised concerns among local traders and small businesses. Walmart has stated that it is committed to supporting small businesses and creating jobs in India. None of the parties have commented on the transaction.
