Flipkart plans to launch IPO in 12-15 months: Report
What's the story
India's leading e-commerce platform Flipkart is gearing up for an IPO in the next 12-15 months, according to The Economic Times. The company has initiated the process by changing its domicile from Singapore to India, aiming to go public by late 2025 or early 2026. Flipkart's proposed IPO will be the largest share issue by a new-economy company in India. It will have a major impact on the country's start-up sector, which is the third largest in the world.
Funding details
Flipkart's IPO journey and funding
Flipkart has been talking about IPO plans since late 2021. However, the talks were put on hold amid poor market conditions in 2022-23. The company has raised nearly $1 billion in funding this year, including a major $350 million contribution from Google. The recent spate of consumer firms' IPOs in India has sparked interest in a public share sale at Flipkart once again.
Investment returns
Walmart's investment in Flipkart and potential IPO payout
Since buying Flipkart in 2018, Walmart has pumped in over $2 billion in primary capital into the company through several funding rounds. Just this year, it invested $600 million. Walmart now owns nearly 81% of Flipkart, with SoftBank and GIC being among other investors. A successful IPO by Flipkart could give the US-based retail giant a massive return on investment.
Business performance
Flipkart's growth and market position
Under Group CEO Kalyan Krishnamurthy, Flipkart is working on improving its bottom line while growing at a rate slightly higher than the industry average. During its October quarter earnings call, Walmart reported Flipkart had achieved double-digit growth during its flagship Big Billion Days sale this year. Analysts estimate the Indian e-commerce industry clocked ₹1 lakh crore in gross sales this festive month and Flipkart has retained its lead during this key festive season.