Tiger Global increases stake in Flipkart

Tiger Global increases stake in Flipkart

The filings by Flipkart indicate that Binny Bansal has sold a tranche of shares for the third time since Walmart’s takeover of the e-commerce firm in 2018.

Tiger Global, the New York-based hedge fund has reportedly increased its holding in e-commerce giant Flipkart by buying shares from erstwhile co-founder Binny Bansal, according to regulatory filings accessed by business intelligence firm, Paper.vc.

The filings by Flipkart indicate that Binny Bansal has sold a tranche of shares for the third time since Walmart’s takeover of the e-commerce firm in 2018.

In this round, Bansal has reportedly transferred part of his holding to two Tiger Global funds, offering 47,759 equity shares to existing shareholder Internet Fund III Pte Ltd and 54,596 shares to incoming shareholder Tiger Global Eight Holdings.

Paper.vc says, "Our lower end estimate of the consideration for this sale would be approximately $14.5 million, based on the Walmart acquisition price from 2018. If we incorporate a modest increase in Flipkart’s valuation because of the growth of its subsidiary PhonePe, it could go up to $25 million.

In June 2019, Bansal had monetised a portion of his shareholding a cash consideration of $76.4 million via a sale to FIT Holdings SARL, Walmart’s Luxembourg entity. He also seems to have sold a significant block of shares (1,122,433) for approximately $159 million, according to paper.vc estimates.