Walmart is going to buy the stakes of many key investors of Flipkart. The move is part of Flipkart’s latest deal with Walmart.
According to reports, a number of Flipkart’s investors have agreed to sell their stakes to Walmart.
Walmart has reached an agreement on buying the stakes of New York-based investment firm Tiger Global Management, South African media conglomerate Naspers, venture capital firm Accel and China’s Tencent Holdings.
However, SoftBank, presently the biggest investor in Flipkart, is in discussion with Walmart for a better price for its shares. It is seeking a better price, estimated at $15-17 billion, through a secondary sale of shares.
Moreover, Flipkart founders, Sachin Bansal and Binny Bansal may sell part of their shares in the company. These six shareholders collectively hold more than 55% share in Flipkart.
Ebay, which also holds stakes in Flipkart, is not ready to make a deal with Walmart due to its commercial agreement with the homegrown e-tailer.
Flipkart’s deal with Walmart will the value the Bangalore-based company at about $20-22 billion, close to a 100% rise from the $10.2-billion valuation it got in April 2017.