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Flipkart buys back Shares of $350 Million from investors to become a Private Ltd. Firm

India's largest online marketplace is all set to turn into a private limited firm and has already brought back $350 million worth of shares from its investors.

Flipkart Flipkart buys back Shares of $350 Million from investors to become a Private Ltd. Firm Source : Press

India's largest online shopping portal Flipkart has brought back shares worth $350 million from its investors as it seeks to convert its Singapore-incorporated company to a private limited firm. The move is taken so that the company could ease the way in for the new strategic investor.


The company purchased shares for $350.5 million from some of its investors including Tiger Global and Accel and has also begun the process of converting Flipkart to a private limited company, changing its name to Flipkart Pte Ltd.


The move was taken so that the company could ease the way in for a new strategic investor. US retail giant Walmart Inc is in advanced talks with Flipkart to acquire a controlling stake of more than 51 percent in the Bengaluru-based e-commerce firm at a valuation of at least $18 billion.

According to sources, "Typically strategic investors don't like to deal with multiple shareholders because it just becomes more cumbersome. So they very often ask companies to clean up the cap table or consolidate small shareholders."


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