Flipkart Buys Back US $350 mn Worth Shares From Its Investors

Indian e-tailer major Flipkart completed another round of buyback of its shares valued at US $350 million (Rs 2,275 crore) from its investors, according to its regulatory filing on Thursday.

The buyback also paves way for the Singapore-registered Flipkart to become a private entity and sell its stake to bidders like Walmart at a higher value.

The Chennai-based business intelligence platform Paper.vc, which sourced the filing from 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.

“The buyback will enable the e-commerce giant to bargain for a favourable deal with the US-based retail behemoth Walmart, which is eyeing a majority or controlling equity stake in it to foray into the multi-billion dollar Indian retail space,” a market analyst told reporters.

The buyback also paves way for the Singapore-registered Flipkart to become a private entity and sell its stake to bidders like Walmart at a higher value.

“The company’s valuation is estimated to be US $18 billion, which is based on the buyback price paid to investors, including premium,” added the analyst.

The decade-old company had raised a whopping US $6.11 billion till date since 2009 through 14 rounds of funding.