Tiger Global bets more on Flipkart; buys shares from Binny Bansal

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Updated: September 2, 2019 12:01:23 PM

Binny Bansal, who stepped down abruptly from Flipkart board as group chief executive officer in November last year, had already sold his shares twice since Walmart acquired Flipkart.

Binny Bansal has sold shares to two Tiger Global funds. Photographer: Brent Lewin/Bloomberg

Global hedge fund and prominent startup backer Tiger Global has increased its stake in Walmart-owned Flipkart by buying a tranche of shares held by Binny Bansal in the company. Bansal has sold shares to two Tiger Global funds. 47,759 equity shares have been transferred to the company’s existing shareholder Internet Fund III Pte and 54, 596 shares have been sold to the new shareholder Tiger Global Eight Holdings, according to Flipkart’s regulatory filings sourced by business signals platform Paper.vc. 

Binny Bansal, who stepped down abruptly from Flipkart board as group chief executive officer in November last year, had already sold his shares twice since Walmart acquired Flipkart for around $16 billion in May 2018 for 77 per cent stake.

The lower-end worth of the shares sold this time is around $14.5 million as per the Walmart acquisition price from 2018, said Paper.vc in a note. The value could increase up to $25 billion if a modest increase in Flipkart’s valuation due to PhonePe’s growth is added.

Binny Bansal had monetised a small part of his holding for a likely cash consideration of $76.4 million in June this year through a sale to Walmart’s Luxembourg entity — FIT Holdings SARL. Also, Bansal appeared to have sold a significant tranche of shares (1,122,433) for around $159 million. With the current share sale, Bansal’s share in Flipkart reportedly stands at around 3 per cent.

Post Flipkart exit, Binny Bansal had backed venture capital fund launched by his personal investment adviser Sailesh Tulshan and also co-founded startup consultancy firm xto10x Technologies with his former Flipkart colleague and Ola’s head of marketplace Saikiran Krishnamurthy and former Flipkart supply chain Vice President Neeraj Aggarwal.

Tiger Global has been on an investment spree in startups since around October last year after almost a virtual freeze of close to three years since 2016 funding slowdown. The fund has backed over a dozen startups in past around 10 months with the latest round in ed-tech startup Vedantu apart from INDwealth, Grofers, UrbanClap, Cred etc. Majority of his investments have recently been into business-to-business enterprise vertical including CheckMate, Facilio, Fyle, Innovapptive, Clevertap, OKCredit, Open etc.

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