Flipkart, India’s largest eCommerce company, has been aggressively discussing its initial public offering (IPO), which is expected to take place next year. CEO Kalyan Krishnamurthy indicated the business is considering the Flipkart IPO around November next year in an offsite meeting with a limited group of executives earlier this week, according to sources familiar with the subject. Scaling the grocery company, according to Krishnamurthy, will be key in that path.
While the Flipkart IPO plan is being finalized, individuals familiar with the meeting’s deliberations suggested that a US listing for Flipkart might be delayed until March 2023, depending on external variables like market circumstances. This comes as the Walmart-owned company considers raising a pre-IPO round in the next quarter or so in order to benchmark its value ahead of the IPO.
Walmart has already said that it intends to launch the Flipkart stock IPO. According to sources, the company’s chief financial officer (CFO) Brett Biggs said the same thing at a recent conference without providing any deadlines. Flipkart is owned by Walmart in the United States, which controls 72 percent of the company.
While the pre-IPO investment round’s basic structure has yet to be finalized, individuals familiar with the matter said Flipkart will seek fresh money with a significant increase in value before going public. Flipkart Group, which includes Myntra, was expected to generate $23 billion in gross sales on its platforms this fiscal year, according to sources in September. Due to changes in currency rates, sources predicted the corporation will conclude the year close to the amount.
Flipkart, which began as an online bookstore in 2007, was last valued at $37.6 billion in July after a $3.6 billion funding round led by CPP Investments, the Singapore government’s sovereign wealth fund GIC, Japan’s SoftBank Vision Fund 2, and Flipkart’s largest shareholder Walmart, as well as participation from other existing backers. Following Walmart’s acquisition of the firm in 2018, this was the first investment round from outside investors.
Despite heightened competition, Flipkart is focused heavily on the grocery industry, according to the sources stated above. With a $145 million investment in Ninjacart, the retailer has increased its ante in the online grocery market, as originally reported by sources. In addition, Shopsy, the company’s social commerce division, has joined the market to compete with current companies such as DealShare and Meesho.
According to people involved with the meeting, when questioned about eCommerce rivals, Krishnamurthy said that Amazon remained the company’s major competition in India, while the others are merely “noise” that the team should overlook.
SoftBank-backed Meesho, which started as a social commerce platform in 2015, joined the consumer-focused eCommerce industry earlier this year and is hoping to challenge the incumbents as a significant competitor. It indicated in September, upon concluding a $570 million investment round, that it will utilize a large portion of the additional funds to expand this company. Singapore’s Shopee, which just entered India and is thought to be garnering early popularity, is another new competitor in the market.
Flipkart said it sells groceries in 1,800 cities and towns and expects to expand to 2,000 more by the middle of next year when it announced the Ninjacart investment. Flipkart Quick is now offered in 10 locations, with intentions to expand it to 200 by the end of 2022.
Frequently Asked Questions (FAQs)
When will the Flipkart IPO go place?
The Flipkart IPO date has not been revealed yet.
What is the Flipkart IPO lot size?
The lot size of Flipkart IPO is yet to be revealed.
When is the Flipkart IPO scheduled to go public?
The listing date of the Flipkart IPO is yet to be disclosed.
How do I apply for the Flipkart IPO?
You may apply online via your stockbroker using UPI. If you want to submit application forms, fill out an offline IPO form and deposit it with your broker.