Walmart believes in the Indian e-commerce market
Investment fund Tiger Global has sold its stake in Flipkart for $1.4 billion to Walmart.
Retail giant Walmart continues to invest in Indian e-commerce giant Flipkart. According to the Wall Street Journal, the American multinational, which in 2018 bought 77% of the “Indian Amazon” for $16 billion, recently acquired additional shares for $1.4 billion.
The Tiger Global fund, which held 4% of Flipkart’s capital, sold its last shares to the company. With this new transaction, the Indian company would be valued at 35 billion dollars, slightly below the 38 billion reached in 2021 after a major fund-raising.
A Walmart spokesperson said: “We remain confident in Flipkart’s future and are even more positive today about the opportunity in India than when we first invested. With its 1.4 billion inhabitants, India and its $150 billion e-commerce market are a particularly attractive horizon for international retail behemoths.
In India, Flipkart is in competition with Amazon. Last month, Jeff Bezos’ company announced plans to invest a further $15 billion in India by 2030. Other companies, such as Reliance and JioMart, as well as Meesho, are also giving Flipkart a hard time.
Flipkart was founded in 2007 and aims to become the undisputed leader in India. “Our ambition is long-term, and it will come at the right time,” a Walmart spokesperson confirmed to BQ Prime media. Announced several years ago but postponed due to recent economic difficulties, this IPO could boost Flipkart’s valuation to $50 billion.