In a strategic move to further solidify its position in the Indian e-commerce market, retail sector titan Walmart has announced a substantial increase in its stake in the Indian e-commerce subsidiary, Flipkart.
Walmart has invested a staggering $3.5 billion (approximately Rs 28,953 crore) to acquire shares from non-controlling interest holders in the six-month period leading up to July 31, 2023.
Reports indicate that following this transaction, Walmart’s ownership in the Indian e-commerce giant, Flipkart, will rise to an impressive 80.5 percent.
Walmart’s Strategic Move: Acquires $3.5 Billion Worth of Shares in Flipkart
Walmart disclosed in a statement filed with the US Stock Exchange (US SEC) that during this six-month period, the company also secured $700 million in new equity funding for its majority-owned subsidiary, PhonePe.
“Over the course of six months, the company paid $3.5 billion to acquire shares from certain non-controlling interest holders of Flipkart and to settle liabilities owed to former non-controlling interest holders of PhonePe,” Walmart stated.
As part of this transaction, Walmart purchased shares from hedge funds Tiger Global and Accel Partners.
Additionally, the US retail giant concluded the acquisition of the remaining stake held by Flipkart co-founder Binny Bansal.
Walmart Deepens Investment in Indian Market, Increases Flipkart Stake
PhonePe, a digital payments company, is another significant asset in which Walmart holds a majority stake.
Flipkart’s Myntra remains the country’s largest e-commerce marketplace for fashion and lifestyle products, offering a wide range of top brands to customers across India.
With access to over 6,000 brands in its marketplace, Myntra continues to play a pivotal role in India’s e-commerce landscape.
Walmart’s increased investment reaffirms its confidence in the thriving potential of the Indian e-commerce sector.