Sachin led 11-year-old Flipkart through most of its existence as CEO from 2008 to 2015, and, with the current stake sale, has reached a milestone.
Walmart's additional $3 billion investment will up its shareholding by 10-12 per cent.
On Wednesday, during presentation of results in Japan, Son had inadvertently disclosed the deal before Walmart and Flipkart could announce it in India.
Of Flipkart’s biggest backers, Tiger Global Management will take home $3.3 billion while SoftBank gets $4 billion. There is good news for staff too as they are in for a windfall of $500 million
Flipkart’s stock options are granted over a four-year period, with employees allowed to vest them every month after a one-year threshold.
In a bid to forestall the queries, Flipkart group CEO Binny Bansal told employees at a town hall that Sachin was “not part of the platform anymore”.
Mobile payments company Paytm aims to double transactions from 1 billion per quarter this year to 2 billion by the end of this year.
The deal is expected to increase the valuation of the startup 4-5 times to $400 million in less than six months after it raised funds from Xiaomi and Shunwei late last year.
Tiger Global Management will continue to hold around 5% stake in the company after Walmart and Google-owner Alphabet pick up the stake, the sources said.
The decision on Sachin’s exit from Flipkart may be decided over the next one week as Flipkart and Walmart decide on the contours of the board.
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