Flipkart Likely to Opt for Traditional US IPO Between October-December This Year: Report

Flipkart, owned by Walmart, is likely to go for an IPO between October and December this year.

According to an exclusive report by Bloomberg, Walmart has set up an internal IPO team for Flipkart and is leaning toward a traditional debut in the United States

The report further states that the startup’s valuation could top USD 35 billion as it goes public.

In May 2018, Walmart had said in a filing with a U.S. regulator that it may take Flipkart public in as early as four years, detailing for the first time a potential listing timeline for Walmart’s largest-ever acquisition.

Minority investors holding 60 percent of Flipkart’s shares “acting together, may require Flipkart to effect an initial public offering” four years after the close of the Walmart-Flipkart transaction, the Bentonville.

The IPO should be done at no less a valuation than that at which Walmart invested in the Indian e-commerce firm, the filing said.

Walmart had paid USD 16 billion for a roughly 77 percent stake in Flipkart in what is the U.S. retail giant’s largest-ever deal and a move to take on arch-rival Amazon.com in a key growth market.

The investment implies a valuation of nearly USD 21 billion for Bengaluru-headquartered Flipkart. Minority shareholders after the deal included co-founder Binny Bansal, China’s Tencent Holdings, U.S. hedge fund Tiger Global Management and Microsoft Corp.

Former Amazon employees Sachin and Binny Bansal founded Flipkart in 2007 and, just like Amazon, began by selling books.

Online sales in India have surged during the Covid-19 pandemic, as people are trying to avoid crowded grocery stores, shops, and malls. E-tailers generated $4.8 billion in gross merchandise value (GMV) during the recent festive season sale, according to consultancy firm Forrester Research.

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