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In the first half of 2023, Walmart, the US retail giant, spent $3.5 billion (about 28,953 crore) to purchase shares from its non-controlling interest holders, according to a report by PTI quoting Walmart’s announcement. This increased Walmart’s holding in Flipkart.
According to a US Securities & Exchange Commission (US SEC) statement from the Bentonville-based Walmart, Flipkart acquired $700 million in fresh rounds of equity capital for its subsidiary PhonePe during the first half of 2023.
Walmart Invests $3.5 Billion in Flipkart, Expanding Indian Market Presence
The corporation spent USD 3.5 billion, according to the newspaper citing Walmart’s US SEC filing, “during the six months ended July 31, 2023, to acquire shares from certain Flipkart noncontrolling interest holders and settle the liability to former noncontrolling interest holders of PhonePe.” ec
The stake was purchased by the US retailer from Accel Partners and the hedge fund Tiger Global. According to the report, it also bought Binny Bansal’s remaining stock in Flipkart.
According to some sources, Walmart’s overall interest in the Indian e-commerce business will increase to 80.5% after the purchase of additional shares in Flipkart.
Walmart successfully acquired a 77% share in Flipkart in 2018.
Flipkart will eventually be listed by the corporation on stock markets.
Flipkart’s GMV was high, and e-commerce increased 26% in the June quarter of current fiscal year, according to comments made by Walmart in August.
“Flipkart and PhonePe, two of our companies in India, both had successful quarters. Judith McKenna, president and chief executive officer of Walmart International, had stated that a significant portion of it was due to the company’s proximity to customers in those areas and the value and convenience that it could now provide.
On Friday, Mahindra Logistics Ltd. announced a partnership with Flipkart to support the latter’s pan-India operations by offering a dedicated fleet of heavy commercial trucks, support for route management, and network operations, among other things.
According to the agreement, Mahindra Logistics and Daimler India Commercial Vehicles will work together to operate 32-foot single-axle HCVs for Flipkart over many national routes.