In a significant development, Binny Bansal, co-founder of Flipkart, along with early investors Accel and Tiger Global Management, have completely exited the e-commerce giant by selling their stakes to Walmart. The deal, valued at around $35 billion, reflects the tremendous growth of Flipkart and marks one of the largest exits in the Indian startup ecosystem. Let’s delve into the details of this mega deal and the impressive returns generated for the stakeholders.
1. Accel and Tiger Global’s Stakes:
Both Accel, India, and the US initially held over 20% in Flipkart when they first invested in 2008. However, over time, their stakes were gradually reduced to about 6% before Walmart acquired a majority share in Flipkart in 2018. Despite the acquisition, Accel retained a small 1.1% stake but has now fully exited, generating returns of approximately $1.5-2 billion, yielding an outstanding 25-30X return on its initial investment of $60-80 million.
2. Tiger Global’s Impressive Gains:
Tiger Global, another early investor, also retained a minority stake in Flipkart post-acquisition. However, it has now exited the company, making remarkable gains of approximately $3.5 billion.
3. Binny Bansal’s Journey:
While Sachin Bansal, the other co-founder, sold his entire stake to Walmart in 2018, Binny Bansal continued to hold a small stake in Flipkart. Recently, he too divested his remaining stake to Walmart, making about $1-1.5 billion since inception.
4. Flipkart’s Success Story:
Flipkart’s journey began in 2007 as an online bookstore operating from a Bengaluru apartment. With investments from Accel in 2008 and Tiger Global in 2010, the e-commerce platform gradually expanded its offerings and raised significant capital, culminating in Walmart’s acquisition of 77% of the company for $16 billion in May 2018.
5. Positive Sign for Indian Startups:
The exits of the founders and investors from Flipkart stand as a significant milestone for the Indian startup ecosystem, where exits are relatively rare. The remarkable returns achieved in this deal validate the potential and success of Indian startups, providing a boost of confidence to other founders in the vibrant startup landscape.
The complete exit of Binny Bansal, Accel, and Tiger Global from Flipkart marks a major milestone in the history of Indian startups. With a deal valued at $35 billion and impressive returns generated for stakeholders, Flipkart’s journey from an online bookstore to a leading e-commerce giant is a testament to the potential and growth of the Indian startup ecosystem. As the country’s startups continue to scale and thrive, this mega deal sets a positive precedent for future exits and reinforces investor confidence in India’s dynamic market.
