Walmart, the retail giant, has recently increased its ownership in the renowned e-commerce company Flipkart, as per The Wall Street Journal report.
The purchase involved buying out the entire stake held by hedge fund Tiger Global in Flipkart, amounting to $140 million (Rs 11,511.16 crore).
Tiger Global previously had a 4 percent stake in the company.
The Current Valuation
The latest deal has led to a reevaluation of Flipkart’s worth, which now stands at $3.5 billion.
This comes after Walmart’s significant acquisition of a 77 percent stake in Flipkart five years ago, investing $16 billion in the company.
Flipkart had announced its plans to go public within four years following that acquisition.
Walmart’s Latest Acquisition
Earlier this year, there were reports of private equity firms Accel and Tiger Global discussing the sale of their remaining stakes to Walmart. These firms have been long-term investors in Flipkart since its inception. Now, Walmart has successfully acquired the complete stake of Tiger Global for $140 million.
Resignation Woes at Flipkart
Flipkart, a giant in the e-commerce sector, faced a series of resignations among its top-level employees in recent months.
In May, news surfaced that three high-ranking employees were about to leave the company.
Interestingly, all three of them had been associated with Flipkart for nearly 8-9 years, with prior experience at companies like Hindustan Unilever and Yahoo.
The resignations began soon after Flipkart announced its proposal for the buyback of Employees’ Stock Options Plan (ESOP).
