Representative image of the Walmart and Flipkart logos.
Credit: Reuters Photo
US retail giant Walmart has increased its stake in Indian e-commerce subsidiary Flipkart as it paid $3.5 billion (around Rs 28,953 crore) to acquire shares from its non-controlling interest holders in six months to July 31, 2023.
Additionally, during the six months ended July 31, 2023, the company received $700 million related to new rounds of equity funding for the company's majority-owned PhonePe subsidiary, said the Bentonville-based retailer in a US Securities & Exchange Commission (US SEC) filing.
"During the six months ended July 31, 2023, the company paid $3.5 billion to acquire shares from certain Flipkart noncontrolling interest holders and settle the liability to former noncontrolling interest holders of PhonePe," said Walmart filing.
After this, Walmart's total holding in the Indian e-commerce player Flipkart would increase to 80.5 per cent, some reports said.
Walmart has bought a stake from hedge fund Tiger Global and Accel Partners. Besides, the US retail major also acquired the residual stake of Binny Bansal, Flipkart cofounder.
PhonePe is a digital payments company in which Walmart has a majority stake following the takeover of parent outfit Flipkart, which had shifted its headquarters from Singapore to India.
US-based Bentonville in 2018 completed the acquisition of a 77 per cent stake in Flipkart and became the majority owner of the Indian e-commerce company. Walmart plans for the public listing of Flipkart.
Last month, in an investor call, Walmart said Flipkart's GMV was strong and eCommerce grew 26 per cent in the June quarter.
Flipkart's Myntra is the country's largest ecommerce marketplace for fashion and lifestyle products, offering top brands to customers across India. Myntra now provides access to more than 6,000 brands on its marketplace.
"Both our businesses in India, Flipkart and PhonePe, had strong quarters as well. A lot of that is driven from just really being close to the customer in those markets and the combination of value and convenience that we're now able to offer," Walmart International President & Chief Executive Officer Judith McKenna had said.