Flipkart Buybacks $350 Mn Worth Shares To Regain Pvt. Co. Status

Flipkart Buybacks $350 Mn Worth Shares To Regain Pvt. Co. Status

The sources indicated that Walmart had valued Flipkart at between $20 and $22 billion.

Walmart's investment would give Flipkart not just additional funds to fight Amazon, but also arm it with a formidable ally with extensive experience in retailing, logistics and supply chain management. They weren't particularly amped about the deal when it was being initiated and now that it seems to be final, SoftBank plans on selling off its 25% stake in the company to earn almost $5 billion.

The Chennai-based business intelligence platform Paper.vc, which sourced the filing from the Singapore's Accounting and Corporate Regulatory Authority (ACRA), said Flipkart had bought over 18 lakh preferential shares from its institutional investors like Tiger Global, Accel and Naspers. Besides, Google parent Alphabet is also likely to participate in the deal.

As Flipkart inches closer to sell a majority stake to global retail giant Walmart, reports have emerged that Sachin Bansal, co-founder and chairman of the e-tailer may quit after the deal is done and dusted.

The source told Factor Daily, "That has already been discussed as part of the deal talks". Both forged a partnership in the U.S. past year where Walmart products are sold on Google Express, the tech giant's online mall.

More news: Fitbit Strikes Deal With Google That Could Lead to Wearables Collaboration

However, Amazon was indeed interested in buying Flipkart, said two sources, asking not to be named.

Amazon and Flipkart are locked in an intense battle for leadership in the Indian market and have pumped in billions of dollars towards marketing and setting up infrastructure in the country. Any Flipkart-Amazon deal is likely to come under the scanner of the Competition Commission of India (CCI), given the dominant market share these two entities have grabbed in the e-commerce space - around 70 per cent collectively. While Kalyan Krishnamurthy will continue as Flipkart's CEO, the company's founder, Sachin Bansal will probably be stepping down.

On Wednesday, Amazon sought a 60 percent stake in Flipkart, which might have challenged Walmart's plan. Amazon is out of the running unless Walmart hits unforeseen trouble.

Earlier in April 2017, when Flipkart gained $2.5 Bn funding from SoftBank, the biggest exit was orchestrated by Tiger Global, which made a partial exit selling shares worth over $424 Mn in Flipkart to the Japanese conglomerate.

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