Binny Bansal, who co-founded India’s largest e-tailer has sold $76 million worth Flipkart shares to Walmart arm FIT Holdings SARL.
According to a source, cited by ET, Bansal has transferred 539,912 equity shares to FIT Holdings SARL, a Luxembourg entity, owned and operated by Walmart, for $76.4 million. Also, the deal has bring down his stake to 3.52 per cent.
Flipkart, owned by Walmart, is based out of Bengaluru, founded by Sachin Bansal and Binny Bansal together in 2007. The company initially focused on book sales, before expanding into other product categories such as consumer electronics, fashion, and lifestyle products.
While, Walmart, owned by Walton family, is an American multinational retail corporation that operates a chain of hypermarkets, discount department stores, and grocery stores. It came into existence in 1962 by Sam Walton.
Earlier, Binny Bansal had sold a small portion of his minority holding while keeping a 3.85 per cent when Walmart bought Flipkart in 2018.
Walmart, the world’s largest retailer, acquired Flipkart for about $16 billion last year, in what was the largest ecommerce M&A transaction globally.
At the time, Walmart had acquired 77 per cent of the Bengaluru-headquartered company, valuing it at $21 billion. Sachin Bansal had sold his entire stake, earning an estimated $800 million to $1 billion.
Furthermore, the sources claimed that according to his contract with Walmart, Binny Bansal is entitled to sell more than half his stake by August 2020, two years after the closure of the transaction.
Adding on, Binny Bansal has exit from his role as the CEO of Flipkart in 2018, following an internal prove conducted to investigate an allegation of personal misconduct against him.