Investment firms Accel and Tiger Global are planning to sell their remaining shareholdings in the Indian e-commerce giant Flipkart. Currently, Accel holds one per cent, while Tiger Global owns four per cent stakes in the Walmart-backed start-up. Both companies combinedly pose five per cent of the company.
According to an Economic Times (ET) report, the global e-commerce giant and Flipkart’s parent Walmart may offer $2.5 billion to both investment firms to acquire their stakes. The prospective deal may value Flipkart at around $7.6 billion, which is less than Flipkart’s readjusted valuation of $33 billion. In 2021, the company achieved a valuation of $37.6 billion after bagging an investment of $3.6 billion in a round led by SoftBank and other investors. However, the valuation is getting readjusted due to its separation from PhonePe.
Walmart’s stakes will be increased to 72 per cent from 67 per cent after the possible takeover.
“They (Accel and Tiger) want to sell and exit now fully. The discussions are moving ahead and the transaction will close in due time. It is a significant moment for both Accel and Tiger Global,” a person aware of the development told ET.
Both investment firms are planning to exit as both of them want to return money to their partners and sponsors from funds that are about to mature.
Starting with a $1 billion investment, Accel has invested nearly $100 million in Flipkart since 2017. With this deal, Accel is expecting a $100 million return. When Walmart acquired Flipkart, it bagged $350 million after selling a particular stake to the global company.