Walmart Inc paid US$1.4 billion to buy Tiger Global Management’s remaining stake in Flipkart, boosting its bet on the Indian retailer and helping the money manager provide distributions to investors at a time when accessing liquidity is tough.

The transaction, which took place in recent days, valued the Indian e-commerce giant at US$35 billion, according to a letter sent by Tiger Global to investors that was obtained by Bloomberg News. That’s down from the nearly US$38 billion valuation Flipkart commanded in its 2021 funding round. A spokeswoman for the investment firm declined to comment on the deal, which The Wall Street Journal reported on earlier on Sunday (July 30).    

Separately, venture capital firm Accel also sold its 1% stake in Flipkart to Walmart, Economic Times reported.

The sale allows Tiger Global an opportunity to successfully exit its long-time investment in the Indian start-up. The firm had initially put US$8.6 million into Flipkart’s Series B round in 2009 at a valuation of US$42 million, before subsequently adding US$1.2 billion between 2010 and 2015, according to the letter. The investments were made via their venture Private Investment Partners funds five through nine, the hedge fund, and their long-only vehicle.

In 2017, Tiger Global sold part of its Flipkart stake to SoftBank Group Corp, and a year later sold more to Walmart. In total, its investment in Flipkart has helped generate US$3.5 billion in gains, the money manager said in the letter, adding that it will provide distribution details in the coming weeks. 

Walmart, which first paid US$16 billion in 2018 for a 77% stake in Flipkart, has been accelerating its push into India’s growing consumer market. Earlier this year, its local payments business launched an online retailing app that will host local stores and smaller merchants.

The acquisition of the stakes from Tiger Global and Accel means Walmart will hold about 77% of Flipkart, up from 72% previously, according to Economic Times. 

“We are grateful for our partnership with the Flipkart team and for the opportunity to invest in the company through early chapters in its growth,” Tiger Global said in the letter. 

  - Bloomberg