U.S. retail giant Walmart has reportedly increased its stake in Indian e-commerce firm Flipkart by buying out hedge fund Tiger Global and venture capital firm Accel’s remaining stakes.
According to a Wall Street Journal report, Walmart paid USD 1.4 billion to buy the remaining Flipkart shares owned by Tiger Global in recent days, valuing the Indian company at about USD 35 billion, with the U.S. newspaper citing a letter the fund sent to investors.
The figure is USD 3 million less than the USD 38 billion valuation that Flipkart attained in 2021.
The stake increase comes five years after Walmart bought a 77 percent stake in Flipkart for some USD 16 billion in 2018.
Unlike rival Amazon, Flipkart focuses on small towns and cities in India, and has grown to become one of nation’s largest online marketplaces.
In its most recent trading update in May, Flipkart saw a double-digit revenue growth in the quarter ended April 30, 2023, helping Walmart post strong international sales growth during the quarter.
The e-commerce market in India is estimated to reach U.S. 350 billion by 2030, according to Statista.