Valuation of up to $35 billion! Indian e-commerce company Flipkart may launch IPO this year

Indian e-commerce giant Flipkart, controlled by Walmart Inc., is planning an initial public offering in the fourth quarter of this year that could value the company at as much as $35 billion, according to people familiar with the matter .

It is understood that Flipkart was founded in 2007 and was acquired by Walmart 11 years later. Today, Flipkart includes fashion retailer Myntra and Flipkart Wholesale, the latter of which is Flipkart's digital market for small and medium-sized enterprises . It has more than 300 million registered users and more than 150 million products in more than 80 categories.

The U.S. retail giant has set up an in-house IPO team for Flipkart and is leaning toward a traditional initial public offering in the United States , the people said .

Flipkart is understood to have tried to go public through a blank-check company to expedite the listing process, but is not considering that route now .

Walmart shares rose 1.1% to $140.92 in New York trading on Tuesday, but retreated to flat after Bloomberg reported a possible initial public offering .

Saroj Panigrahi, a former JPMorgan Chase & Co. lawyer hired by Flipkart in December, is driving the IPO process, the people said. JPMorgan and Goldman Sachs Group Inc. are in discussions with the company for an advisory opinion on the deal, they added .

IPO discussions are still ongoing and could change , and Flipkart may eventually choose a location outside the United States , according to people familiar with the matter .

E-commerce has emerged as a winner from the coronavirus pandemic, with a surge in global demand prompting investors to bet on the business’ future.

Separately, Flipkart’s Indian rival Amazon.com Inc.’s stock price surged more than 75% last year and its market value now exceeds $1.6 trillion.

In India, a flood of startups are expected to hit the public markets this year and next, with at least 10 companies lined up for IPOs , including Policybazaar, an online insurance aggregator, and Zomato, a leading food delivery platform.

"Flipkart's IPO will be an exciting large public offering and a very important milestone for the Indian startup ecosystem," said Neha Singh, co-founder and CEO of Tracxn Technologies Pvt, a private market intelligence research firm .

India

E-commerce

IPO