Flipkart to invite banks for its potential IPO next month
What's the story
Walmart-backed e-commerce giant Flipkart is gearing up for its potential initial public offering (IPO) in India. The company plans to invite banks to pitch for the work as early as next month, according to Bloomberg. This comes after informal discussions with investors and bankers about a possible listing in Mumbai.
Timeline uncertainty
Timing of Flipkart's IPO uncertain
The exact timing of Flipkart's IPO remains uncertain, with sources suggesting it could happen later this year or early next year. If the plan goes ahead, it will likely include a secondary share sale by existing investors like Walmart. The proceeds from the IPO would be used to further expand Flipkart's business operations.
Company growth
Walmart acquired majority stake in 2018
Founded in 2007, Flipkart has grown into one of India's largest e-commerce platforms with over 500 million registered users. Walmart acquired a 77% stake in the firm for $16 billion in 2018 and has since increased its holding through additional purchases. A deal in 2023 to buy Tiger Global Management's remaining stake valued Flipkart at $35 billion at the time.
Market dynamics
Flipkart gets government nod to change domicile to India
Flipkart recently got government approval to change its domicile from Singapore to India, a major move toward a domestic listing. The company competes with global players like Amazon, Reliance's JioMart, and Tata Group in India's massive online retail space. Flipkart also owns Myntra, a fashion retailer, and Cleartrip, a travel booking site.