Flipkart's early backers in talks to sell stakes
Flipkart could see two of its early investors sell their remaining stakes in the business, which amount to approximately 5%. Venture fund Accel Partners and investment firm Tiger Global are in talks with Flipkart’s parent company Walmart towards this end.
“They [Accel Partners and Tiger Global] want to sell and exit now fully,” an anonymous source close to the matter told ET Tech. “The discussions are moving ahead and the transaction will close in due time. It is a significant moment for both Accel and Tiger Global having taken a bet on the company and now leading to another cash exit.”
At present, Tiger Global holds around a 4% stake in Flipkart and Accel Partners holds just over 1% in the business. After selling their respective stakes to parent company Walmart, the US-based business would see its stake in Flipkart increase from its current 72%.
Walmart is expected to pay around $1.5 billon for the purchase of Accel Partners’ and Tiger Global’s shares, ET Bureau reported. Both businesses will receive significant returns on investments the sale. Part of the reason the businesses wish to exit Flipkart is that their investment cycles are drawing to a close.
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