E-commerce continues robust growth trajectory in 2024 driven by smaller cities
Propelled by rising demand from smaller cities, India’s e-commerce sector continued its robust growth trajectory in 2024.
Retail giant Walmart has paid around $3.5 billion to acquire shares in e-commerce major Flipkart from non-controlling stakeholders, including co-founder Binny Bansal and top investment firms Tiger Global and Accel, among others.
In a Securities and Exchange Commission (SEC) filing in the US, the company said that during the six months ended July 31, 2023, “the company paid $3.5 billion to acquire shares from certain Flipkart non-controlling interest holders and settle the liability to former non-controlling interest holders of PhonePe”.
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Additionally, during the six months ended July 31, the company received $0.7 billion related to new rounds of equity funding for the company’s majority-owned PhonePe subsidiary.
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Bansal reportedly received about $1-$1.5 billion from his shareholding in Flipkart.
Binny, along with Sachin Bansal, exited Flipkart after selling it to Walmart in 2018 for around $16 billion.
Last year, Binny Bansal sold his stake worth $264 million (more than Rs 2,000 crore) in the homegrown e-commerce platform to Chinese Internet giant Tencent.
In July, retail giant Walmart paid $1.4 billion to acquire VC form Tiger Global’s remaining shares in Flipkart. According to a report in Wall Street Journal, Walmart paid the money to boost Flipkart’s stake.
Walmart purchased Tiger Global’s remaining holding in Flipkart to further cement its control of the Indian e-commerce giant.
Tiger Global made an overall gain of $3.5 billion on an investment of $1.2 billion.
Flipkart was earlier valued at $37.6 billion in a 2021 funding round. Walmart had 72 per cent share in Flipkart as last reported.
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