Report: Walmart’s eCommerce Company Flipkart Delays IPO, Raises Valuation Target

Flipkart, Walmart’s India-based eCommerce company, has put its initial public offering (IPO) on hold as it raised the valuation target to between $60 billion and $70 billion, up from its initial goal of $50 billion, Reuters reported Thursday (April 7).

Sources told the news outlet that Flipkart is planning to go public in 2023, instead of this year. The delay stems, in part, from Flipkart’s plan to boost its value by focusing on its online healthcare services and travel bookings, both relatively new businesses, sources said.

The war in Ukraine and the resulting global market turmoil also factored in the decision to put the IPO on hold, the report said, citing sources.

Flipkart is incorporated in Singapore and wants to list in the United States, the report noted.

One year ago, Flipkart acquired the troubled Mumbai-based travel aggregation site Cleartrip.

See more: Walmart’s Indian eCommerce Marketplace Flipkart Acquiring Cleartrip

The purchase helped Flipkart diversify and expand into more products and services. Since last spring, Flipkart has offered travelers digital bookings for rooms and flights. The acquisition is also expected to support Flipkart’s entry into the digital travel sector which features MakeMyTrip, as well as Yatra and Booking.com.

Flipkart did not respond to a request for comment.

In December, Walmart CFO Brett Biggs was asked by analysts about the IPO’s timeline. He said Flipkart’s business was performing also expected and an IPO is in the cards.

See also: Walmart’s Flipkart Reportedly Edging Closer To Launching An IPO

In late 2020, talk of Flipkart going public heated up as the Indian company continued to expand. Flipkart competes against other eCommerce giants including Amazon and Reliance Industries.

In July of that year, 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.