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Walmart raises stake in Flipkart with $3.5 billion investment.


Walmart invests $3.5 billion in Flipkart to realize Indian market share

American multinational retail firm Walmart has taken a significant step by investing $3.5 billion in Flipkart whereas strengthening its presence within the Indian market. This strategic funding comes within the first half of 2023 and was disclosed by Walmart in an SEC submitting on Friday. Consequently, Walmart’s possession stake in Flipkart now hovers round 80%.

Walmart expands its maintain on Flipkart

In accordance with a earlier submitting by Flipkart, a number of stakeholders of Flipkart equivalent to Tiger World, Accel and Flipkart co-founder Binny Bansal offered their shares as a part of the deal. Notably, Tiger World reported a revenue of $3.5 billion on their $1.2 billion funding in Flipkart, their largest success within the South Asian market.

strategic funding in india

Walmart’s funding of Flipkart is part of its broader foray into India’s e-commerce and payment platforms. The corporate already owns a majority stake in PhonePe and has invested over $20 billion within the two firms mixed. The transfer comes at a time when varied firms together with Amazon are lowering their funding within the Indian market.

Walmart’s aggressive guess on India

By comparability, Amazon plans to spend lower than $2.5 billion on its e-commerce platform in India over the following seven years. In distinction, Walmart is growing its dedication to the Indian market by making extra investments in Flipkart and PhonePe.

Amazon funding plans in India

Whereas Amazon has already invested over $11 billion in its e-commerce and cloud providers in India within the final decade, it plans to take a position an extra $15 billion by 2030. Of this quantity, $12.7 billion shall be allotted to its cloud enterprise. Amazon Web Firms (AWS).

Walmart trusts Flipkart and PhonePe

In the course of the earnings name, John David Rennie, CFO of Walmart, expressed confidence within the progress of Flipkart and PhonePe. He acknowledged the sturdy progress in gross merchandise worth (GMV) and web gross sales for Flipkart, citing a rising ecosystem of providers equivalent to advertising and marketing, journey and healthcare.

India – the following huge possibility

India has turn into a battleground for international firms as they attempt to faucet into its large buyer base. With its quick rising economic system and favorable situations for companies, India has emerged as the brand new China when it comes to long run funding potential.

Baron Capital introduced in a latest fund letter, we imagine India presents essentially the most engaging long-term funding enchantment in our universe. Monetary reform, digitization, formalization, and growing credit score penetration favor essentially the most subtle, best-managed, public firms.

PhonePe receives new funding

PhonePe, which was not too long ago demerged from Flipkart, has raised $850 million in contemporary funding from buyers equivalent to Common Atlantic, Tiger World and Walmart.


Walmart’s $3.5 billion funding in Flipkart and its continued dedication to PhonePe reveals the corporate’s willpower to realize an even bigger foothold within the Indian market. As competitors will increase, firms equivalent to Walmart and Amazon acknowledge the huge potential and alternatives that exist in India. Their funding displays India’s thriving e-commerce sector, digital transformation and financial progress, positioning the nation as a beautiful funding vacation spot.

inquiries to ask

1. What’s the significance of Walmart funding in Flipkart?

Walmart’s $3.5 billion funding in Flipkart strengthens its place within the Indian market and highlights its aggressive method to enter India’s e-commerce and cost platforms.

2. How a lot of Flipkart does Walmart personal now?

With this newest funding, Walmart’s possession stake in Flipkart has gone as much as practically 80%.

3. Who’re a number of the consumers providing their stake in Flipkart?

Tiger World, Accel and Flipkart co-founder Binny Bansal is amongst a number of consumers who’ve supplied their stake in Flipkart.

4. How a lot is Amazon planning to put money into India?

Amazon plans to take a position at least $2.5 billion on its e-commerce platform in India over the following seven years.

5. What are Amazon’s funding plans in its cloud enterprise in India?

Of the $15 billion that Amazon plans to put money into India by 2030, $12.7 billion has been earmarked for its cloud enterprise, Amazon Web Companies (AWS).

6. How a lot funding has PhonePe obtained not too long ago?

PhonePe has secured contemporary funding of $850 million from consumers equivalent to Regular Atlantic, Tiger World and Walmart.

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