Flipkart buys back $350 mn worth shares

04 May, 2018, 14:50 | Author: Corey Lynch
  • Share of Unique Visitors in India

And as per earlier reports, the Japanese internet and investment conglomerate will get an exit of $4 billion for its $2.5 billion investment in Flipkart eight months ago.

Some of Flipkart's main investors - U.S. hedge fund Tiger Global Management, South African tech investor Naspers and venture capital firm Accel - are likely to retain small stakes, the report said.

Unconfirmed reports have started trickling in, indicating that the mega-deal of Indian e-commerce has been finalized.

As per some reports, Walmart may spend somewhere between $8 billion and $12 billion to buy a majority stake in Flipkart.

"The company's valuation is estimated to be $18 billion, which is based on the buyback price paid to investors, including premium", added the analyst. Besides, Google parent Alphabet is also likely to participate in the deal.




Flipkart ( India's Largest E-commerce company ) board has approved to sell 75% of the stack to Walmart in a $15 billion deal as per reported by Bloomberg, citing unnamed sources. Negotiations are still ongoing and there is no deadline per se, they said, although Flipkart itself seems to continue favouring the deal with Walmart: joining forces with the predominantly brick-and-mortar American retailer would help the company put into practice its plans for a new physical chain in India. These early investors in Flipkart were of the view that combining the Indian e-tailer with Amazon would face hurdles with the Competition Control of India.

Meanwhile, a TOI report today said Walmart is insistent on keeping on board only one co-founder of Flipkart.

It's now unclear if Flipkart favors one offer over the other, but it's possible that it has a preference between competing for the lead in the market alongside Walmart, and immediately becoming the dominant e-tailer in India in conjunction with Amazon. As per the regulatory filings, Flipkart Ltd purchases shares for $350 Million from its investors and also initiated the process of converting Flipkart into a Pvt Ltd company.

According to reports that came a few days back, Amazon.com Inc made a formal offer to buy 60 percent of Flipkart, thus complicating Walmart Inc's bid for majority ownership of the Indian online retailer.

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