Retail giant Walmart has completed a significant buyout of hedge fund Tiger Global’s investment in Flipkart, an e-commerce firm based in India.
According to the Wall Street Journal, Walmart paid $1.4 billion to acquire Tiger Global’s stake in the company. The transaction now values Flipkart at an impressive $35 billion.
Although a Walmart spokesperson confirmed the transaction, they refrained from disclosing specific financial details of the deal.
On the other hand, Tiger Global did not provide any immediate response to requests for comments from Reuters.
The buyout marks a continuation of Walmart’s engagement with Flipkart, as the retail behemoth had already acquired a 77% majority stake in the company in 2018.
At that time, Walmart invested approximately $16 billion in the e-commerce firm.
In the same year, Walmart expressed its intention to potentially take Flipkart public within four years of the initial acquisition.
The decision to buy out Tiger Global’s investment showcases Walmart’s confidence in the prospects of Flipkart.
According to the Economic Times, Tiger Global held approximately 4% of Flipkart.
This recent buyout is expected to strengthen further Walmart’s position in the ever-growing Indian e-commerce market and solidify Flipkart’s position as a key player in the industry.
As both companies look to the future with renewed optimism, industry experts will closely monitor their strategic moves and potential future developments.