Flipkart's "Reverse Flip": Domicile Shift Signals Commitment to Indian Market
Flipkart, India's largest e-commerce company, is planning an IPO in the next 12-15 months. The company, currently valued at $36 billion, is owned by Walmart. This IPO would be the largest by an Indian new-economy company.
Reasons for the IPO and Domicile Shift
The company has secured internal approval to move its domicile from Singapore to India, a necessary step for the IPO process. This shift is part of Flipkart's plan to go public, which has been in discussion since 2021 but was delayed due to unfavourable market conditions. The success of other recent IPOs from startups has encouraged Flipkart to move forward with their plans.
Strategic Factors for the IPO
Flipkart's decision to repatriate operations to India signals its commitment to the Indian market while leveraging local tax benefits and policies. The company is strengthening its e-commerce dominance through increased investments in supply chain, logistics, and technology to compete with Amazon. Additionally, the timing aligns with India's growing tech IPO momentum, following the successes of companies like Zomato and Nykaa.
Flipkart's Financial Performance and Funding
Flipkart has raised almost $1 billion in funding in 2024, with a significant portion coming from Google. Walmart acquired a majority stake in Flipkart in 2018, and has since invested over $2 billion, including $600 million in 2024. In the financial year 2023-24, Flipkart reported a loss of Rs 2,358 crore with a revenue of Rs 17,907 crore.
Industry Overview and Market Conditions
Analysts estimate that the Indian e-commerce industry reached Rs 1 lakh crore in gross sales during December 2024. Flipkart remains a dominant player in the market. The success of other global internet companies, like Coupang in South Korea, suggests that public markets are favourable for growing e-commerce businesses.
Timing and Expectations
The IPO is expected to be launched by the end of 2025 or the first quarter of 2026. This IPO will make Flipkart part of a group of new-age Indian internet companies listed on the stock market, which currently includes Zomato, Nykaa, Swiggy, One97 Communications (Paytm), and PB Fintech.