The Indian Wire » Startups » Walmart increases stake in Flipkart to 81.3% from 77%
Startups

Walmart increases stake in Flipkart to 81.3% from 77%

Walmart

US-based global retail giant Walmart has increased its stake in the Indian e-commerce startup Flipkart, as reported by The Hindu BusinessLine.

Earlier this year, Walmart had acquired 77% stake in Flipkart in a mammoth $16 billion deal.

According to the reports, Walmart now owns 81.3% stake in Flipkart, citing data from the data intelligence platform Paper.vc.

The news comes at a time when Flipkart is struggling to find its footing amidst a setback, after the resignation of Binny Bansal, Founder and Group CEO of Flipkart, following allegations of personal misconduct.

With the increase in Walmart’s stake, Tencent is the second highest stakeholder in Flipkart with 5.37% share, followed by New York-based Tiger Global Management with 4.77%. While Binny Bansal resigned, he still holds 4.2% stake in the Indian e-tailer.

Other minority stakeholders include Microsoft with 1.53%, Accel Partners with 1.38%, Iconiq Capital with 0.98%, Singapore-based Temasek with 0.29%, and UBS with 0.19%.

After the acquisition of Flipkart by Walmart, some of the major stakeholders like Japanese investment giant SoftBank, South African technology conglomerate Naspers, and Accel Partners, completely sold either all or part of their stakes to Walmart, as part of the transaction.

According to media reports, The Flipkart co-founder was also forced out of the company after differences arose with the company’s then board members regarding his role after the Walmart acquisition.

Earlier this month, there were reports of Myntra-Jabong CEO Ananth Narayanan quitting, which were later denied by Narayanan in a media statement, bringing some relief to the company.

Although, it was announced that Jabong will be integrated into Myntra, which will result in some redundancies, leading to the downsizing of the workforce by 10%, in order to keep the integration consistent and efficient.

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