Walmart’s Flipkart Reportedly Edging Closer To Launching An IPO

Talk of Walmart-controlled Flipkart Group going public is heating up as the Indian company continues to expand. Flipkart is an eCommerce marketplace site competing against the likes of Amazon and Reliance Industries.

Livemint reported that Walmart is working with Goldman Sachs to look at holding an initial public offering (IPO) of stock. Sources said the offering would seek to raise $10 billion in the U.S.

This summer, Flipkart raised $1.2 billion in a funding round led by Walmart, the company’s majority owner. The investment put Flipkart’s valuation at $24.9 billion.

“We’re grateful for the strong backing of our shareholders as we continue to build our platform and serve the growing needs of Indian consumers during these challenging times,” Flipkart CEO Kalyan Krishnamurthy said at the time.

Krishnamurthy said Flipkart was “rapidly” expanding its offerings from electronics and fashion to include grocery and other general merchandise. The company recently invested $34.6 million in Arvind Fashions’ new subsidiary, Arvind Youth Brands.

Talk of Flipkart planning an IPO heated up in September, with eCommerce company sources saying the target would be a valuation of $45 billion to $50 billion with. The deal would happen in 2021.

Walmart is now planning to sell around 25 percent of India’s largest online retailer, sources told Livemint. The value of the company would be about $40 billion.

A Flipkart spokesperson told Livemint: “An IPO has always been part of Flipkart’s long-term strategy. However, the focus at present is on growth and democratizing commerce in India through technology, while continuing to unlock customer value.”

A spokesperson for Goldman Sachs declined to comment. Flipkart would reportedly use IPO proceeds to continue its growth.

At the same time, Flipkart is also planning to sell off a slice of its digital payments division PhonePe in an effort to gain funding for expansion.

Earlier this month, PhonePe CEO Sameer Nigam said in a statement that selling off a stake would give the startup “dedicated long-term capital to pursue our vision of providing financial inclusion to a billion Indians.”