Walmart purchased a controlling stake in Flipkart in 2018.
Venture capital firms Tiger Global and Accel are reported to sell their respective stakes in Flipkart to U.S.-based Walmart. According to a report by the Economic Times, the two companies will sell a total of about $1.5 billion worth of stake, or a collective share of 5%, in the e-commerce major.
Tiger Global and Accel want to fully exit from Flipkart and the transaction is expected to close in due time, ET reported citing sources. The former owns about 4% share in the company, while the latter owns over 1% stake in Flipkart, it added.
There is no official confirmation from any of the parties.
The American multinational retail giant Walmart purchased a controlling stake in the Indian company in 2018. Walmart acquired the Indian e-commerce platform for about $16 billion.
On the other hand, the digital payments platform PhonePe separated from its parent Flipkart ahead of its initial public offering. According to another Reuters report last year, the Kalyan Krishnamurthy e-commerce platform had internally raised its IPO valuation target by around a third to $60 billion-$70 billion. The e-commerce company further plans a U.S. listing in 2023. Due to a shaky economic outlook, the company’s IPO is being deferred, and it is now expected to go public sometime this year.