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Thursday, Oct 17, 2019

Binny Bansal sells Flipkart shares worth over USD 14 million to Tiger Global

Regulatory filings submitted by Flipkart indicate that former co-founder Binny Bansal has sold a tranche of shares for the third time since Walmart’s takeover of the e-commerce company.

business Updated: Sep 02, 2019 15:44 IST
Press Trust of India
Press Trust of India
New Delhi
Binny Bansal, who had co-founded Flipkart with Sachin Bansal in 2007, continued to lead Flipkart as Group CEO and co-founder till November last year.
Binny Bansal, who had co-founded Flipkart with Sachin Bansal in 2007, continued to lead Flipkart as Group CEO and co-founder till November last year. (Reuters Photo )
         

Flipkart co-founder Binny Bansal has sold his shares worth over USD 14 million (over Rs 100 crore) in the Indian e-commerce major to New York-headquartered hedge fund Tiger Global, as per regulatory filings accessed through data intelligence platform Paper.vc.

“Regulatory filings submitted by Flipkart indicate that former co-founder Binny Bansal has sold a tranche of shares for the third time since Walmart’s takeover of the e-commerce company. This time around, Bansal transferred part of his holding to two Tiger Global funds,” Paper.vc said.

Bansal sold 47,759 equity shares to existing shareholder Internet Fund III Pte Ltd and 54,596 shares to incoming shareholder, Tiger Global Eight Holdings, it added.

“Our lower end estimate of the consideration for this sale would be approximately USD 14.5 million, this based on the Walmart acquisition price from 2018. If we incorporate a modest increase in Flipkart’s valuation because of the growth of its subsidiary PhonePe, the number could go up to USD 25 million,” it said.

Reaction from Binny Bansal could not be elicited.

In June this year, Bansal is said to have sold a small portion of his shares to FIT Holdings SARL, Walmart’s Luxembourg entity, for about USD 76.4 million. He is also believed to have sold shares worth USD 159 million during the Walmart takeover.

Binny, who had co-founded Flipkart with Sachin Bansal (not related) in 2007, had sold a small portion of his minority holding during the Walmart deal.

After the deal, Binny Bansal continued to lead Flipkart as Group CEO and co-founder till November last year, when he resigned following a probe into an alleged “serious personal misconduct”. Binny had strongly denied the allegation and the independent investigation done on behalf of Flipkart and Walmart “did not find evidence to corroborate the complainant’s assertions against Binny”.

(The story has been published from a wire feed without any modifications to the text.)

First Published: Sep 02, 2019 15:42 IST

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