Flipkart share to be sold for $1.5 billion by Accel and Tiger Global: Report
Tiger Global and Accel, who together hold more than 1% of the company's shares, are considering to sell their stakes in Flipkart to Walmart.
According to a report in the Economic Times quoting a source, Tiger Global and Accel, two early backers of e-commerce company Flipkart, are in negotiations to sell their remaining stake in the company to Walmart Inc. for about $1.5 billion. If the talks are successful, Walmart's stake in Flipkart would increase by about 5%. Walmart paid around $16 billion buying the controlling share in the company in 2018 and later stated it could go public in four years.
Apparently, Tiger Global and Accel each own around 4% of the business.
This report was not able to be independently verified by YourStory.
The Flipkart marketplace division receives a $90M capital injection.
According to the article, the private equity companies want to completely abandon the company. The acquisition is anticipated to finalise in due course, it was stated, and conversations are already underway.
To address the rising demand for digital commerce in India in 2021, Flipkart raised $3.6 billion at a $37.6 billion valuation from SoftBank, Tiger Global, Walmart, and others. This money will be used to make deeper investments in its supply chain, technology, and infrastructure.