Walmart’s Indian Business Flipkart Raises IPO Valuation Target to $60-70 Billion, May List Next Year – Reuters
2022.04.07 16:08
Walmart’s (WMT) Indian Business Flipkart Raises IPO Valuation Target to $60-70 Billion, May List Next Year – Reuters
Walmart’s (NYSE:WMT) Flipkart has reportedly increased its internal IPO valuation target to $60 billion-$70 billion and reportedly plans to list in the U.S. in 2023, rather than this year, according to Reuters.
The Walmart-owned Indian e-commerce giant initially targeted an IPO valuation of $50 billion and planned to pursue its listing in 2022. However, the company has reportedly delayed the IPO for 2023 as it wants to further increase its valuations by focusing on its two new units – online healthcare and travel bookings, as per the report.
Furthermore, Flipkart’s IPO plans have also been affected by the current market uncertainty as a result of the ongoing war in Ukraine.
Last year, the e-commerce company purchased an Indian travel booking platform Cleartrip and introduced its Health+ app this week to provide medicines, but also healthcare-related products and services.
In December, analysts asked Walmart CFO Brett Biggs about Flipkart’s timeline, to which he replied that the company was performing almost exactly like we thought, adding the initial public offering is still very much in the cards.
Biggs did not provide a clear timeline for the IPO, though the reports now say that the company is eyeing the early-to-mid period in 2023.
Brick-and-mortar retail companies in India have been raising concerns over the past years that Flipkart and Amazon have been evading federal regulations, encouraging Walmart to pursue IPO plans for Flipkart.
Furthermore, the Indian government is expected to introduce new e-commerce regulations that could further repel foreign companies.
By Senad Karaahmetovic
