Bangalore: Flipkart, India’s most valuable consumer internet startup, could go public next year, thanks to the rapid digital transformation in the country, which has been further accelerated by the covid-19 pandemic, a person familiar with it said. with the development.
Flipkart would seek a listing abroad, either in the US, where Walmart is based, or in another country, and it could be valued at $ 40-45 billion.
In 2018, Walmart Inc. had acquired a majority stake in Flipkart for $ 16 billion, valuing Flipkart at $ 21 billion. Doug McMillion, Walmart’s president and CEO, had said he could get Flipkart public as soon as four years after the acquisition closed.
“The IPO must be done with a valuation no less than that Walmart invested in the Indian e-commerce company,” Walmart had said in a regulatory filing.
“According to Walmart’s schedule, the initial public offering could take place by 2022. But the digital transformation in India, with customers increasingly moving online to shop, has been so rapid that it has made Flipkart grow much faster. Therefore, the IPO plan could also be accelerated. Flipkart would get the best valuation if the IPO occurs in the United States, “said the person, who declined to be named.
A spokesperson for Flipkart did not respond to inquiries.
In July, Walmart led a $ 1.2 billion investment in Flipkart Group, valuing the company at around $ 25 billion, in its largest fundraiser since its acquisition in 2018.
In India, Flipkart competes with Amazon and Reliance Industries Ltd, which has been growing its e-commerce business with JioMart.
Digital transformation
Flipkart’s subsidiary PhonePe, which the main e-commerce company acquired in April 2016, is also looking to become profitable by 2022 and go public by 2023. mint first reported on PhonePe’s IPO plans on April 22.
The leading digital payments company that rivals companies like Paytm Payments Bank, Google Pay and Amazon Pay is more likely to go public in the US and will seek a $ 10 billion valuation on the list.
Recently, Flipkart, as part of its Walmart financing announcement, said that PhonePe is currently processing $ 180 billion total annualized payment value (POS) and is witnessing more than 500 million monthly transactions on its platform. It seems to come out of 2020, with more than 275 million users on its platform. PhonePe has also set its sights on international geographies and may also be looking to bring its payment solutions through Walmart Inc. to the North American market.
In the last few months alone, Flipkart has not only expanded its customer base and broad-based supply chain, but has also reached out to more delivery pin codes even in smaller cities, and introduced several vernacular languages on its platform.
“However, Flipkart’s focus is on growth at the moment and the IPO timeline is not yet set. But the global orientation and acquisition of Walmart was to always create the right processes and build the company so that it eventually goes public, “said a second person.
In July, Flipkart acquired Walmart Inc.’s Indian operations as its US parent consolidates its operations in this fast-growing retail market to compete with Reliance and Amazon, among others. By taking control of Walmart India Pvt. Ltd, which operates Best Price cash-and-carry wholesale stores, the Flipkart Wholesale digital marketplace will help the e-commerce company grow its B2B vertical.
Flipkart Wholesale aims to connect local manufacturers with retailers and bring the wholesale market at their fingertips through technology.
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