Accel, Tiger International mull exiting India’s Flipkart in $1.5 billion stake sale

(Reuters) -Non-public fairness companies Accel and Tiger International, two early backers of Indian e-commerce agency Flipkart, are in talks to promote their remaining stake within the firm to dad or mum Walmart Inc for about $1.5 billion, the Financial Occasions reported on Thursday.

The stake, which collectively quantities to about 5%, would elevate Walmart’s possession within the e-commerce large, the newspaper reported citing folks conversant in the matter.

“They (Accel and Tiger) need to promote and exit now totally. The discussions are transferring forward and the transaction will shut in due time,” an individual conversant in the matter advised ET.

Accel owns just a little over 1% of Flipkart, whereas Tiger International holds about 4% of the corporate, the report mentioned.

Flipkart, Walmart and Tiger International didn’t instantly reply to Reuters’ requests for remark. Accel couldn’t be instantly reached for a remark.

Walmart acquired a majority stake in Flipkart for about $16 billion in 2018 – its largest deal ever – and later that 12 months mentioned it might take the corporate public in 4 years.

In April final 12 months, Reuters reported that Flipkart had internally raised its IPO valuation goal by round a 3rd to $60 billion-$70 billion, and plans a U.S. itemizing in 2023.

(Reporting by Jyoti Narayan in Bengaluru; Enhancing by Krishna Chandra Eluri)