Personal fairness companies Accel and Tiger World, two early backers of Indian e-commerce agency Flipkart, are in talks to promote their remaining stake within the firm to dad or mum Walmart for about $1.5 billion (roughly Rs. 12,235 crore), the Financial Instances reported on Thursday.
The stake, which collectively quantities to about 5 p.c, would increase Walmart‘s possession within the e-commerce large, the newspaper reported citing individuals acquainted with the matter.
“They (Accel and Tiger) need to promote and exit now absolutely. The discussions are shifting forward and the transaction will shut in due time,” an individual acquainted with the matter informed ET.
Accel owns a bit of over 1 p.c of Flipkart, whereas Tiger World holds about 4 p.c of the corporate, the report mentioned.
Flipkart, Walmart, and Tiger World didn’t instantly reply to Reuters’ requests for remark. Accel couldn’t be instantly reached for a remark.
Walmart acquired a majority stake in Flipkart for about $16 billion (roughly Rs. 1,30,000 crore) in 2018 – its largest deal ever – and later that 12 months mentioned it might take the corporate public in 4 years.
In April final 12 months, Reuters reported that Flipkart had internally raised its IPO valuation goal by round a 3rd to $60 billion (roughly Rs. 4,90,000 crore) – $70 billion (roughly Rs. 5,70,00 crore), and plans a US itemizing in 2023.
Earlier this month, Walmart confirmed that it had already paid the Indian authorities a lot of the practically $1 billion (roughly Rs. 8,300 crore) in tax owed after digital funds firm PhonePe, which the US retailer owns by Flipkart, shifted its headquarters from Singapore to India.
Walmart purchased a controlling stake in Indian e-commerce large Flipkart in 2018, giving it possession of PhonePe. The corporate mentioned final month it had accomplished the separation of PhonePe from Flipkart, including that it will stay a majority stakeholder in each corporations.
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