Walmart Invests $600 Million in Flipkart as Part of $1 Billion Funding Round
- ByStartupStory | December 22, 2023
US-based retail giant Walmart has reportedly invested close to $600 million in the Indian ecommerce platform Flipkart. This marks Walmart’s first direct investment in the company this year, following its acquisition of Tiger Global Management’s stake for $1.4 billion in July, which increased Walmart’s shareholding in Flipkart to 80.49%.
Walmart’s total investment in Flipkart during the first half of 2023 amounted to $3.5 billion. The recent $600 million investment is said to be part of a larger $1 billion funding round, with the remaining funds expected to come from other investors, including SoftBank. Tencent, holding 5.98% stakes in Flipkart as of July 2023, is reportedly the second-largest shareholder in the company.
In July, Flipkart was valued at nearly $38 billion during Walmart’s acquisition of Tiger Global Management’s stake. However, Flipkart has not disclosed the valuation for the current investment, despite queries sent by media outlets.
In other developments, Flipkart hived off its payments entity PhonePe in December 2022 to unlock value for the latter. This move resulted in a one-time $700 million ESOP payout for Flipkart employees, announced in July.
Financially, Flipkart India Pvt Ltd, the company operating the ecommerce marketplace business, reported consolidated losses of Rs 4,890.6 crore for FY23. However, its consolidated net income stood at Rs 56,012.8 crore, reflecting the company’s significant scale in the Indian market.
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