While the IPO is still on its way, Flipkart has raised funds from a funding round in 2021. The company secured $3.6 billion from the round, pushing its valuation to $37.6 billion.
Flipkart, the Indian e-commerce company of retail company Walmart (NYSE: WMT), has upped its target valuation for its upcoming initial public offering (IPO) to $60-70 billion. Knowledgeable sources told Reuters that Flipkart internally increased its IP valuation target by a third ahead as it looks forward to a public listing in the coming year. According to the two sources, the Indian e-commerce company plans to list on a US trading platform. While the first source noted that the new IPO valuation target might be up to $70 billion, the second source said that Flipkart is raising the target to $60-$65 billion.
Flipkart Ups IPO Valuation Ahead of Scheduled Date
The new IPO valuation is about $10-$20 billion more than what Flipkart initially announced. Before now, the e-commerce giant said it expected a $50 billion valuation after a successful IPO. Flipkart is anticipating the IPO as it internally plans to pump valuation by focusing on two of its new business. The sources revealed that the two relatively new services include travel bookings and online healthcare. Additionally, Flipkart also re-arranged its IPO decisions due to the ongoing war between Russia and Ukraine. Already, the war has affected many companies and even countries as it continues to impact the global market. With the ongoing unrest across the global market, Flipkart considered fixing its IPO for 2023 instead of this year, as earlier planned.
Flipkart’s recent acquisitions confirm the sources’ assertions about the new businesses. In 2021, the Indian e-commerce giant purchased the traveling booking website Cleartrip. And more recently, it unveiled “Health+,” an app that focuses on providing healthcare products and services. According to one of the sources commented, “Flipkart thinks there is an even bigger upside of valuation than originally envisaged … The travel business has started showing great signs already for them.”
Despite no specific details on Flipkart’s public listing, Walmart CFO Brett Biggs has noted that it will definitely happen. During a conference in December, the CFO said that Indian business is performing “almost” well. He added that the “IPO is still very much in the cards.”
Although not officially confirmed by Flipkart, the sources said the IPO would take place by mid-2023.
Flipkart’s Funding Round
While the IPO is still on its way, Flipkart has raised funds from a funding round in 2021. The company secured $3.6 billion from the round, pushing its valuation to $37.6 billion.
Flipkart and Amazon.com Inc (NASDAQ: AMZN) are the two major competitors in India’s burgeoning e-commerce market. Brick-and-mortar retailers are protesting against the two companies, claiming that they bypass federal regulations. The accusations included that the e-commerce companies also favor certain sellers over them. However, both Flipkart and Amazon.com have denied the allegations.
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