CAPE TOWN, South Africa--(BUSINESS WIRE)--South Africa-based global internet and entertainment group, Naspers Limited (JSE: NPN; LSE: NPSN) today announced the sale of its 11.18% stake in Indian ecommerce company Flipkart, to US-based retailer Walmart (NYSE: WMT) for US$2.2bn, representing an IRR of approximately 32%.
Launched in October 2007, Flipkart is India’s largest ecommerce marketplace. Naspers initially invested in August 2012 and its cumulative investment to the point of sale amounts to US$616m.
The proceeds 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.
Bob van Dijk, Group CEO, Naspers, said: “India is one of the most exciting markets in the world. We are proud to back Indian entrepreneurs whom we believe have what it takes to build outstanding and long-lasting businesses, and Flipkart is a great example of this. Our decision to sell is consistent with our strategy to realise value from the businesses we help to build. The time has come for us to wish the team well for the next chapter of their story, and we are excited about the future of OLX, PayU, Swiggy and MakeMyTrip.”
Oliver Rippel, CEO of B2C ecommerce at Naspers, said: “We initially invested in Flipkart in August 2012, and we’re proud to have been part of the journey to build the leading ecommerce player in India. We wish the team well as they continue their journey.”
The transaction is subject to regulatory approval and is expected to close later in the year.
Founded in 1915, Naspers is a global internet and entertainment group and one of the largest technology investors in the world. Operating in more than 120 countries and markets with long-term growth potential, Naspers builds leading companies that empower people and enrich communities. It runs some of the world’s leading platforms in internet, video entertainment, and media.
Naspers companies connect people to each other and the wider world, help people improve their daily lives, and entertain audiences with the best of local and global content. Every day, millions of people use the products and services of companies that Naspers has invested in, acquired or built, including Avito, Brainly, Codecademy, eMAG, ibibo, iFood, letgo, Media24, Movile, MultiChoice, OLX, PayU, Showmax, SimilarWeb, Swiggy, Twiggle, and Udemy. Similarly, hundreds of millions of people have made the platforms of its associates Tencent (www.tencent.com; SEHK 00700), Mail.ru (www.corp.mail.ru; LSE: MAIL), MakeMyTrip Limited (www.makemytrip.com; NASDAQ:MMYT), and Delivery Hero (www.deliveryhero.com; Xetra:DHER) a part of their daily lives.
Naspers is listed on the Johannesburg Stock Exchange (NPN.SJ) and has an ADR listing on the London Stock Exchange (LSE: NPSN).
For more information, please visit www.naspers.com.