Naspers sells Flipkart stake to Walmart for R28 billion

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Listed media and internet group Naspers has announced that it has sold its 11.18% stake in Indian e-commerce group, Flipkart, to US mega retailer Walmart for $2.2 billion (R27.7 billion), representing a IRR of 32%.

Launched in October 2007, Flipkart is India’s largest e-commerce marketplace. Naspers initially invested in August 2012 and its cumulative investment to the point of sale amounts to $616 million (R7.75 billion).

According to Naspers, the proceeds of the sale will be used to reinforce Naspers’ balance sheet and will be invested over time to accelerate the growth of Naspers’ classifieds, online food delivery and fintech businesses globally, and to pursue other exciting growth opportunities when they arise.

“Flipkart is one of several leading businesses that Naspers has invested in or built in India. Following the sale of its stake in Flipkart, in India, Naspers retains OLX, the leading online classifieds business, PayU, a leading provider of payment and fintech services, and its investments in Swiggy, the leading online food delivery company, and MakeMyTrip, the leading online travel business,” it said.

The transaction is subject to regulatory approval and is expected to close later in the year.

Via Business Tech