According to a recent report from Reuters, the Indian e-commerce giant Flipkart largely owned by Walmart is preparing to open up initial public offerings in foreign countries like the US or Singapore in 2021 which could be valued around the range of $45-50 billion.
Flipkart is one of the well-established e-commerce marketplaces in the country and after Walmart’s acquisition the company is growing but the reports suggest that the launch of players like JioMart in the segment has left Flipkart in some worry so the company is looking to gear up and for that, the company will be requiring finances and to tackle this situation Flipkart is looking towards the international IPO.
Flipkart is currently deciding between the Singapore and United States since the company is incorporated in Singapore while it’s parent organization Walmart is based in the United States so opening up an IPO in the US will be able to gather more funds.
There is no confirmation from either Flipkart or Walmart since both of them have denied Reuter’s request to comment on the news. The discussions come after the new regulations drafted by the Indian government which makes it easy for homegrown companies to list themselves overseas.
According to a source familiar to this matter has told Reuters that the work has already begun and the Flipkart has started working on the compliance, legal, and finance aspects to meet the regulatory standards ahead of a potential listing.
According to one of the sources, the company won’t be going to list before the end of 2021 or mostly the listing will go live sometime at the beginning of 2022 but for now, things are blurry due to the coronavirus pandemic.
The overseas IPO would prove beneficial for the Walmart owned Flipkart since the likes of its major rivals of Amazon and Jio has been investing heavily on the e-commerce segment so getting some funds to eradicate the competition might be a great option in times like these when e-commerce has witnessed an upwards slope up during the COVID pandemic in the country.
