Walmart, the global retail giant, recently purchased Tiger Global’s remaining stake in Flipkart for an impressive sum of $1.4 billion. Flipkart is India’s biggest online player, having gained ground in the world’s second most populous nation over the past decade.
Tiger Global is an American venture capital firm which invested in Flipkart back in 2009. The two companies have since become close business partners, with Tiger Global investing hundreds of millions of dollars to back the online retailer’s growth.
With Walmart’s recent purchase, the American retail giant now holds a controlling stake in Flipkart. This will further help the company to bolster its presence in India and help it to establish an even bigger footprint on the lucrative e-commerce market.
Walmart’s main goal with the purchase of Flipkart is to expand in the booming Indian market. The country already has one of the world’s largest online shoppers. Analysts estimate that India could be the biggest online retail market in the world by 2035.
It appears that Walmart is playing the long game when it comes to its strategy in India, as it also recently acquired a 77 percent stake in Flipkart competitor PhonePe for an undisclosed amount.
The US retail giant’s acquisition of Tiger Global’s remaining stake in Flipkart marks an important milestone for the company in India. With Walmart’s additional investment, Flipkart looks set to continue its impressive growth.
This move also gives Walmart access to Flipkart’s massive customer base, as well as its extensive logistics capabilities. By combining forces, Walmart and Flipkart may well be able to dominate the Indian e-commerce market.
In conclusion, Walmart’s purchase of Tiger Global’s remaining stake in Flipkart for $1.4 billion is sure to help the retail giant to establish a strong foothold in India’s e-commerce sector. With the partnership, Walmart is sure to benefit from Flipkart’s extensive customer base and logistics capabilities. Only time will tell what is in store for the two companies.
