Last week, reports revealed that Flipkart’s board had approved a $15 billion deal with US-based retail giant Walmart. As part of the deal, Walmart would get close to 75% stake in Flipkart, making it a majority shareholder in the company. Walmart has now officially announced the deal, claiming that it’ll initially acquire roughly 77% stake in Flipkart for $16 billion and the rest of the business will be held by existing investors, including Flipkart’s co-founder Binny Bansal, Tencent, Tiger Global, and Microsoft.
A report from CNBC further highlights that Walmart’s investment in Flipkart includes $2 billion as fresh equity funding and the company plans to use a combination of newly issued debt and cash to finance the round. The two companies are now in discussions to include more investors, which could dilute Walmart’s stake in Flipkart. It’s worth noting that Flipkart will maintain its distinct brands and operating structures and a final close to the deal is expected to take place later this year.
