Flipkart Raises its IPO Valuation Target to $60-70 Billion

Walmart’s Indian e-commerce firm Flipkart has internally raised its IPO (Initial public providing) valuation goal by round a 3rd to $60-70 billion (roughly Rs. 456051.3 crore to Rs. 532003.85 crore), and now plans a US itemizing in 2023 as a substitute of this yr, two sources with direct information of the plan instructed Reuters.

Flipkart, which competes with Amazon in India’s booming e-commerce house, had earlier set an IPO valuation objective of $50 billion (roughly Rs. 380002.75 crore), Reuters has reported.

The foremost motive for ready for the IPO is because of Flipkart’s inside plan to spice up valuations additional by focussing on two of its comparatively new companies —on-line healthcare companies and journey bookings, two of the sources with direct information mentioned.

Two separate sources aware of Flipkart’s plans mentioned the continued international market turmoil sparked by the Russia-Ukraine disaster additionally pressured the Indian firm to rethink its timeline.

Flipkart acquired Indian journey reserving web site Cleartrip in 2021, and this week launched a “Health+” app to supply medicines in addition to different healthcare services and products.

“Flipkart thinks there is an even bigger upside of valuation than originally envisaged … The travel business has started showing great signs already for them,” mentioned the primary supply.

The first supply mentioned the IPO valuation goal may very well be as excessive as $70 billion, whereas the second mentioned it may very well be between $60 to $65 billion (roughly Rs. 456051.3 crore to Rs. 494003.575 crore). Flipkart did not reply to a request for remark.

Asked concerning the IPO’s timeline, Walmart CFO Brett Biggs instructed an analysts convention in December that Flipkart’s enterprise was “performing almost exactly like we thought” and an “IPO is still very much in the cards”, with out specifying when the corporate will listing.

The itemizing, based on sources, is now being deliberate for early-to-mid 2023. Flipkart is integrated in Singapore and needs to listing within the United States, they added.

The IPO planning comes amid rising protests from Indian brick-and-mortar retailers that Flipkart and Amazon bypass federal rules and favour choose sellers, allegations the businesses deny. India can be engaged on a slew of e-commerce sector rules that might spook international giants. Walmart acquired a roughly 77 p.c stake in Flipkart for about $16 billion (roughly Rs. 1,215,62 crore) in 2018 – its largest deal ever – and mentioned later that yr that it may take the corporate public in 4 years.

Just final yr, Flipkart raised $3.6 billion (roughly Rs. 27351.45 crore) in a funding spherical, giving it a valuation of $37.6 billion (roughly Rs. 285670.7 crore).

That fund elevating helped bolster the corporate’s monetary place, and it had sufficient money proper now for enlargement, which means an IPO wasn’t a necessity at this stage, mentioned one of many sources.

India’s IPO market has slowed after having boomed as enthusiastic retail buyers and a pandemic-induced flood of straightforward cash pushed costs to document highs, encouraging a slew of Indian tech firms like Paytm and Zomato to go public.

More than 60 firms made their market debut in India in 2021 and raised a complete of greater than $13.7 billion (roughly Rs. 104086.435 crore), which was greater than the earlier three years mixed.

© Thomson Reuters 2022