Flipkart IPO: Walmart-owned Indian e-commerce company Flipkart has raised its initial public offering (IPO) valuation target by nearly a third. According to a report by news agency Reuters, Flipkart is now preparing to raise money from the IPO at a valuation of $ 60 to 70 billion, while earlier it had targeted an IPO valuation of $ 50 billion.
Flipkart IPO to come in 2023
Reuters quoted two sources as saying that Flipkart is preparing to list in the US stock market and its IPO will not come this year and will come next year i.e. in 2023. Flipkart is a major company in India’s fast growing e-commerce sector, where it competes with the American e-commerce company Amazon.
Why is Flipkart delaying IPO?
Flipkart has recently entered into two new businesses. This includes online healthcare service and travel booking. Flipkart hopes that these businesses will help increase its valuation in the times to come. That’s why she wants to wait for a while before going for an IPO. In addition, the volatility in the global market after Russia’s invasion of Ukraine has forced the company to reconsider its IPO deadline.
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Flipkart launches ‘Health+’ app
Flipkart had acquired Cleartrip, an Indian travel booking website last year. Earlier this week, it launched an app called “Health+” to offer medicines and other healthcare services.
Reuters quoted a source as saying, “Flipkart believes that it can get a higher valuation than what it had initially envisioned. They have already started getting good results from the travel business.” A source said that Flipkart’s IPO valuation could reach $70 billion. At the same time, another source estimated it to be between 60 and 65 billion dollars.
What did Walmart CEO say on IPO?
Walmart CEO Brett Biggs talked about Flipkart’s IPO during an analyst conference last December. He had said that Flipkart’s business performance is progressing exactly as we envisioned. He said that the plan to bring an IPO is almost ready. However, he did not specify the timeline of the IPO.
Walmart has 77% stake
Reuters quoted company sources as saying that Flipkart is planning to launch its IPO in the first half of 2023. He told that Flipkart is a Singapore-registered company, which wants to be listed in the US. US retail giant Walmart bought 77% stake in Flipkart in 2018 in a hefty deal worth about $16 billion.