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[INFOGRAPHIC] Walmart Acquires 77% Stake in Flipkart
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Walmart Inc bought 77% stake in Flipkart on Wednesday May 9, 2018. The deal was closed for $16 Billion dollars and it’s the biggest e-commerce acquisition to date.

walmart acquires flipkart

Flipkart had started in 2007 and it’s an 11 years old Indian e-commerce firm. Its valuation is $20.8 billion as per May 10, 2018.

Bentonville, Arkansas-based Walmart will purchase 77% stake in Flipkart, Walmart said in a statement.

Sachin Bansal and Softbank will completely exit from the company after this deal. Softbank owns around 20% stake in Flipkart.

Flipkart was started by 2 IITians, Sachin Bansal and Binny Bansal, who are not related and both were working for Amazon Inc.

…And right after 11 years (after quitting their job at Amazon), they both made billions of dollars.

Binny Bansal welcomed Walmart and shared it on Twitter,

Now, let us try to understand the entire Flipkart journey with an infographic.

 

Walmart Acquires 77% Stake in Flipkart:

infographics Walmart acquires Flipkart

Source: Times Of India

The entire infographic is divided into 4 parts,

A) Who owns Flipkart Before the sale

B) $0 to $21 Billion dollars in 11 years

C) Some interesting facts about Flipkart

D) Who made billions from this deal

Now, let us see all the above points in brief.

 

Who owns Flipkart before the sale:

Before Walmart acquired 77% stack in Flipkart, it was owned by a couple of entities.

Such as,

SoftBank

22.3%

Tiger Global

22.0%

Naspers

13.8%

Accel

6.9%

Ebay

6.6%

Tencent

6.3%

Sachin Bansal

6.0%

Binny Bansal

5.6%

DST Global

2.7%

Microsoft

1.8%

Employees & Others

6.0%

But after the sale:

Walmart has 77% stake in the company. While, Tiger Global, Tencent Holdings, Accel Partners, Binny Bansal, Microsoft, employees, and others own the rest 23% stake of Flipkart.

 

$0 to $21 Billion dollars in 11 years:

As you can see in phase 2 of the infographic, it took 11 years of hard work and persistence for Flipkart, to become a multi-billion dollar company.

The company started the operations in 2007 and at that time, the valuation of Flipkart was $0.05 Billion dollar.

But Sunny Bansal and Binny Bansal were ready to give what it takes to make Flipkart the next billion dollar company.

…And the day came after 3 years.

In August 2012, Flipkart’s valuation was $1 billion dollars and after that, they have seen “J growth” in their journey.

Though the company faced some problems in 2016-2017 and it cost them $4 billion dollars in valuation.

But in 2017, they again got huge funding from SoftBank and increased the valuation of the company to $20.8 billion dollars.

 

Some interesting facts about Flipkart:

1. At $21 billion dollars, Flipkart is twice as valuable as Tata steel ($10.6 billion). If listed, it would rank 16th in the Sensex list of 30 most valuable companies.

2. Flipkart is among the world’s 15 most valuable startups.

3. It processed orders worth $7.5 billion in 2017-18 by selling 261 Million units and has 54 Million active customers.

4. With the annual revenue of $500 billion, Walmart is the world’s largest company by sales. The second largest company is China’s State grid with $300 billion sales.

 

Who made billions from this deal:

You must be wondering, who made billions after this big deal, right?

As mentioned in the infographic,

1. Sachin Bansal

He made over $1 billion, which is about 6700 Crores in INR for his 6% stake in Flipkart.

But he’s leaving Flipkart and shared the farewell note on Facebook,

 

2. Accel India & Accel US

They will take home around $800 to $1 billion over 3 rounds of sale for over $100 million invested since 2009.

3. Tiger Global

They have invested about $1 billion in several rounds since 2009 and got $3.5 billion in two rounds of sale. Still, they have 5% stake in the company.

4. Naspers

Naspers of South Africa gets $2.2 billion from their $600 million invested over several rounds starting in 2012.

5. SoftBank

SoftBank of Japan exits with $4 billion on $2.5 billion invested 9 months ago; an annualized return of 75%.

This is one of the best decisions our company has made… This is the best place to be anywhere in the WORLD.”

                                 – Doug McMillion, Walmart president, and CEO says to Flipkart employees.

AUTHOR: Abhishek Paliwal

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