Walmart Spent $3.5 Billion To Increase Flipkart Stake in H1 2023

In the first half of 2023, Walmart invested $3.5 billion to increase its ownership stake in Flipkart, a major e-commerce company. This move was revealed through filings with the US Securities and Exchange Commission. Walmart now holds approximately 80% of Flipkart.

Several investors, including Tiger Global Management, Accel Partners, and co-founder Binny Bansal, sold their shares in Flipkart during this period. Walmart paid nearly $1.4 billion to acquire Tiger Global’s stake. As a result of these transactions, Flipkart’s overall valuation decreased from $38 billion in 2021 to $35 billion.

Despite reducing its investments in the South Asian market, Walmart remains optimistic about Flipkart’s growth and potential. During an earnings call, Walmart’s CFO, John David Rainey, highlighted Flipkart’s strong performance, emphasizing its growth in gross merchandise value (GMV) and net sales.

Rainey expressed confidence in Flipkart’s long-term value, noting that India is at the forefront of the world’s digital transformation, with Flipkart being India’s largest online marketplace.

Walmart reported robust growth for its international business in the second quarter of 2024, with contributions from Walmex, China, and Flipkart. The company’s international e-commerce business saw impressive growth, expanding by nearly 26%.

Shubham Roy

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