Walmart’s (NYSE:) Indian online retailer Flipkart has increased its internal IPO valuation by nearly 1/3 to $60-70 billion. The company now plans to launch a US debut in 2023 instead of this year, two sources with detailed knowledge of the plans told Reuters.
Flipkart is one of the companies competing with Amazon.com Inc (NASDAQ:) in India’s booming e-commerce marketplace and has set an IPO valuation target of $50 billion, Reuters reports. The main reason they’re waiting until the IPO starts has to do with Flipkart’s own plan to further boost its valuation by specifically focusing on its two new business models, which offer online health services and travel bookings. Two of the sources who have intimate knowledge of the matter said.
Two different sources with knowledge of Flipkart’s plans say that the ongoing market turmoil in the world caused by the Ukraine-Russia conflict also prompted the company to reconsider its plans for the future. Flipkart bought travel booking site Cleartrip in 2021. A “Health+” app was also launched this week, which will offer medicines and other health goods and solutions. “Flipkart believes the valuation is even larger than originally thought… The travel industry is showing positive signs in its favor,” said Bondsindia.com’s Research Director.
According to a source, the IPO valuation target could reach $70 billion. The second said it could be anywhere from $60 billion to $65 billion. Flipkart did not respond to a request for comment.
In response to questions about the timing of the IPO, Walmart CFO Brett Biggs told an analyst conference in December that the Flipkart business is performing “almost exactly as we expected” and that an “IPO is very possible.” , but did not specify when to maybe list.
According to the sources, this is planned for early 2023 or early 2023. Flipkart is part of Singapore and plans to be listed in America, it said. The United States, they added. The IPO plan comes amid mounting protests from Indian brick-and-mortar stores claiming that Flipkart and Amazon are failing to comply with federal laws and favoring certain sellers, which the companies have denied. India is working on a host of e-commerce regulations that could trap foreign giants.
Walmart last year acquired a 77 percent stake in Flipkart for $15 billion. It was the largest purchase ever and said later that same year it would take the company public within four years.
Last year, Flipkart raised $3.6 billion through a funding round, giving it a value of $37.6 billion.
The fundraising helped improve the company’s financial position, and the company was able to use the money to expand, so an IPO wasn’t necessary at the moment, according to an insider. The Indian IPO market has slowed after exploding on retail investor enthusiasm, and a flurry of easy money pushed prices to record highs, prompting a host of tech companies including Paytm and Zomato Ltd (NS:) to launch public offerings to start . More than 60 companies made their first appearance in the United States in 2021. They received more than $13.7 billion in total. That is more than in the previous three years.
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