Binny Bansal and Accel Exit Flipkart with High Returns: Report
- ByStartupStory | July 31, 2023
Binny Bansal, Co-founder of the leading ecommerce company Flipkart, has made a significant exit from the company by selling his shares to Walmart, generating a substantial amount between $1 to $1.5 billion from the company’s inception to his exit, as reported by Moneycontrol.
Binny Bansal’s co-founder, Sachin Bansal, had already sold his entire stake to Walmart back in 2018. However, Binny Bansal had retained a small stake in Flipkart following Walmart’s acquisition of the company.
Accel, an early-stage investor in Flipkart, has also exited the company with remarkable returns. The report suggests that Accel gained a bumper return of 20-25X, totaling $1.5 to $2 billion, as a result of selling its shares to Walmart. Accel had a significant ownership stake of 20% in Flipkart, which they gradually reduced to 6% after Walmart’s acquisition in 2018.
Furthermore, in March, Binny Bansal was reportedly in discussions to invest around $100-150 million in the digital payments and financial services startup PhonePe as part of an ongoing financing round. If finalized, this investment would stand as one of the largest individual investments in a new-age entity.
In addition to the exits of Binny Bansal and Accel, The Wall Street Journal reported that Walmart recently purchased Tiger Global’s remaining shares for $1.4 billion. This move showcases Walmart’s commitment to advancing Flipkart’s ecommerce ambitions on a global scale. In 2018, Walmart had acquired a 77% stake in Flipkart for approximately $16 billion, marking its largest acquisition to date. The latest deal is expected to bolster Walmart’s dedication to Flipkart, providing it with increased exposure to the global digital-consumer market. According to The Economic Times, Walmart’s total holding in Flipkart is likely to have reached 80% after this transaction.
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