According to sources, Walmart-owned Indian e-commerce giant, Flipkart, is contemplating going public overseas in 2021 with a potential valuation of up to $50 billion. Based in Bengaluru, Flipkart competes with Amazon and Reliance Industries in the Indian market. The company is reportedly eyeing a valuation in the range of $45-$50 billion, which would effectively double Walmart’s initial investment. While the listing destinations are still under consideration, Flipkart is thought to be leaning towards Singapore or the United States, as the latter would provide access to a larger pool of funds. At present, Flipkart has not responded to requests for comment on these plans. The e-commerce firm is currently in the process of engaging external advisers to guide it through the IPO procedures. In order to comply with regulatory standards, Flipkart is making efforts to ensure compliance amidst India’s drafting of new regulations that could permit domestic companies to directly list overseas. Although the IPO target is slated for late 2021 or early 2022, the ongoing COVID-19 crisis introduces a level of uncertainty. Walmart had previously acquired a 77% stake in Flipkart for $16 billion in 2018, marking the largest foreign direct investment in India. In July of this year, Flipkart raised $1.2 billion in funding, elevating the company’s valuation to $24.9 billion. The raised funds will be utilized to bolster the growth of Flipkart’s e-commerce marketplace. It is estimated that the Indian e-commerce sector will be worth a staggering $99 billion by 2024.

Useful Links:
1. Flipkart Official Website
2. Walmart Official Website