With IPO On The Horizon, Flipkart Gets Internal Nod To Move Base To India: Report

Flipkart has reportedly received internal approvals to shift its domicile from Singapore to India as the ecommerce major is gearing up to launch its initial public offering (IPO) in the next 12-15 months.

As per ET’s report, the IPO is expected to take place by the end of 2025 or early 2026. The process has already begun, with a clear timeline in place for taking the company public.

Relocating domicile to India is a key step for the Flipkart’s long-term strategy to align operations with the Indian market and comply with regulatory requirements for a domestic listing. This move is expected to simplify the IPO process and potentially generate substantial tax benefits for the Indian government.

In May, Flipkart began discussions to redomicile its parent entity from Singapore to India. This move is seen as a significant example of the growing trend of reverse flipping, following a similar decision by Walmart-owned PhonePe to relocate its headquarters back to India.

It was reported that Flipkart’s prospective return to India is considered a significant symbol of the reverse-flipping trend, which has also seen Walmart-owned PhonePe relocate its headquarters back to India.

Flipkart Pvt Ltd, currently based in Singapore, operates through multiple subsidiaries in India, handling its marketplace, logistics, payments, and various other verticals.

Walmart, which acquired Flipkart in 2018 for $16 Bn, has been evaluating the right time to take Flipkart public. In May, Walmart confirmed it was exploring IPO timelines for Flipkart and PhonePe.

At the time, Walmart International President and CEO Kath McLay stated, “We have seen a growth in some premiumisation and that is, kind of, lifting the profile of the Flipkart business. And so it (Flipkart) is on track for the growth trajectory that we had them on. And we are looking and exploring when will be the right time to IPO that business.” 

Walmart reported a profit of $5.1 Bn on a revenue of $161.51 Bn during its first quarter, which ended March 2024.

Meanwhile, Flipkart India, the business to business arm of Flipkart, saw its operating revenue surging over 26% year-on-year to INR 70,541.9 Cr in the year ended March 2024.

Flipkart’s marketplace arm, Flipkart Internet reported a strong 21% growth in its revenue to INR 17,907.3 Cr for FY24. 

The company also managed to narrow its losses by 41% YoY to INR 2,358 Cr during the year ended March 2024.