Retail giant Walmart has taken another step in solidifying its position within the e-commerce behemoth Flipkart.
In a recent development reported by The Wall Street Journal, Walmart has acquired the entire stake previously held by hedge fund Tiger Global in Flipkart.
The transaction, valued at $140 million (approximately Rs. 11,511.16 crore), strengthens Walmart’s foothold in the e-commerce arena.
Tiger Global, which previously owned around 4% stake in Flipkart, has now divested its holding, allowing Walmart to further augment its presence in the Indian online retail space.
Notably, Walmart had acquired a significant 77% stake in Flipkart for $16 billion around five years ago in 2018.
Impact on Flipkart’s Valuation:
Reports suggest that Walmart’s acquisition of Tiger Global’s stake has led to a reevaluation of Flipkart’s worth.
The deal has caused the company’s valuation to adjust from $38 billion to $35 billion.
Shifting Landscape and Employee Dynamics:
Amidst these developments, Flipkart has also encountered challenges in its upper echelons.
Reports from May indicate that the company experienced a series of high-profile departures, with three senior employees set to leave.
Intriguingly, all three had served with Flipkart for a considerable 8 to 9 years and had backgrounds at companies like Hindustan Unilever and Yahoo.
This wave of resignations followed shortly after Flipkart announced plans for a buyback of its Employees’ Stock Options Plan (ESOP), indicating a shifting landscape within the company.
Walmart’s persistent investment in Flipkart underscores the ongoing competitiveness and growth potential of India’s e-commerce sector, as key players continue to position themselves for market dominance and capitalize on the country’s burgeoning online shopping culture.