Summary List Placement
Walmart-controlled Indian e-commerce giant Flipkart is preparing for an initial public offering overseas as early as 2021 that could value the firm at $50 billion, Reuters reported.
Flipkart will be aiming for a valuation in the $45 billion to $50 billion range, according to one source with knowledge of the matter.
If achieved, that would mean Walmart more than doubles its 2018 investment in the company. It paid about $16 billion for roughly 77% stake — this remains the single-largest foreign direct investment in an Indian company.
Flipkart is likely to choose either Singapore, where the company is incorporated, or the US, where parent Walmart is based, for its IPO, said two other sources, who asked not to be named.
Flipkart and Walmart did not respond to Reuters’ requests for comment.
The sources said the preparations and discussions have been largely internal for now, but the company is preparing to consult external advisers soon.
Two other sources familiar with the plans said that work has begun to meet compliance, legal, and finance standards ahead of a potential listing.
One of the sources said the company expects to launch the IPO in late 2021 or early 2022, but the pandemic has made this uncertain. The second person added that top-level internal meetings regularly refer to being “IPO ready.”
India’s e-commerce boom
In July, Flipkart raised $1.2 billion in fresh funding with Walmart as its lead investor. That round valued Flipkart at $24.9 billion.
China’s Tencent, US hedge fund Tiger Global, and Microsoft invested in Flipkart as part of a $1.4 billion funding round in 2017.
India’s booming e-commerce sector is expected to be worth $99 billion by 2024, according to Goldman Sachs. In May 2020, India’s largest company Reliance Industries launched grocery delivery service JioMart, which is growing rapidly and delivering more than 250,000 orders per day, according …read more
Source:: Business Insider