Flipkart, India’s largest e-commerce platform, is making headlines with its ambitious plan for a $36 billion IPO. The Walmart-owned retail giant has set its sights on going public within 12–15 months, aiming for a listing by late 2025 or early 2026.
A major step in this process involves relocating its parent company’s domicile from Singapore to India. This move signifies a strategic pivot toward aligning its operations with the Indian market.
Why is Flipkart’s IPO so significant?
This upcoming IPO could be a watershed moment for India’s startup ecosystem. With Flipkart valued at $36 billion, it is poised to become the largest share issue by a new-age company in India.
The public offering not only underscores Flipkart’s dominance in the e-commerce sector but also highlights the maturing Indian public markets, which have been rewarding large internet businesses showing growth and profitability.
Also Read: From Flipkart to FirstCry: Sudhir Sethi’s venture capital journey
Walmart’s stake and its implications
Walmart, which acquired Flipkart in 2018 for $16 billion, currently holds an 81% stake in the company. Over the years, Walmart has injected over $2 billion into Flipkart’s operations, including $600 million in 2024 alone. The Bentonville-based retail giant views Flipkart’s IPO as a critical milestone, enabling significant payouts and validating its investment strategy in India.
| Metric | Value |
| Valuation | $36 billion |
| Walmart’s Ownership | 81% |
| 2024 Funding Raised | $1 billion |
| Revenue (FY24) | ₹17,907.3 crore |
| Loss Reduction (FY24) | 41% |
The road to an IPO
Relocation of domicile
In preparation for the IPO, Flipkart has initiated the process of shifting its parent company’s domicile from Singapore to India. This strategic move not only aligns Flipkart with domestic market regulations but could also result in a significant tax windfall for the Indian government. Similar domicile shifts by startups like PhonePe and Zepto have demonstrated the advantages of listing in familiar markets.
Improved profitability
Under the leadership of Group CEO Kalyan Krishnamurthy, Flipkart has been working to sharpen its bottom line. The company reported operating revenue of ₹17,907.3 crore in FY24, a 21% increase year-on-year, while reducing its losses by 41%. Initiatives like cost restructuring and introducing revenue streams such as advertising, which contributed ₹5,000 crore in FY24, have played a significant role.
Focus on new growth areas
Flipkart is not just banking on e-commerce. The company is making strides in payments, advertising, and fast deliveries. Recent launches like the “Minutes” quick commerce service and Myntra’s 30-minute delivery feature reflect Flipkart’s ambitions to capture emerging segments in online retail. Additionally, its UPI payments app, Super.money, showcases its diversification into fintech.
The big picture: India’s e-commerce boom
India’s e-commerce industry recorded a massive ₹1 trillion in sales during the festive season in 2024. Flipkart maintained its lead during this period, outpacing rivals like Amazon. Analysts believe the growing preference for local consumer brands and platforms will further fuel investor interest in domestic listings like Flipkart’s.
What sets Flipkart’s IPO apart?
- Valuation milestones: With a $36 billion valuation, Flipkart is set to outshine most IPOs in the new economy sector.
- Strong growth trajectory: Initiatives like ad revenue, quick commerce, and fintech diversification indicate a well-rounded growth strategy.
- Investor enthusiasm: Recent successful IPOs of firms like Zomato, Nykaa, and Swiggy have reignited confidence in the Indian startup ecosystem.
Key challenges ahead
While Flipkart’s IPO plans are ambitious, the company must navigate potential hurdles:
- Market conditions: The listing was delayed earlier due to adverse market scenarios. Maintaining momentum will require careful timing.
- Profitability pressures: Although losses have decreased, achieving sustained profitability remains a key goal.
- Regulatory complexities: The domicile shift and compliance with local IPO norms could present logistical challenges.
Conclusion
Flipkart’s planned IPO is a pivotal moment not only for the company but also for India’s burgeoning startup ecosystem. By bringing its operations closer to home, Flipkart is setting the stage for what could be one of the most significant public offerings in India’s history. For investors, this IPO represents an opportunity to be part of a transformative journey in the country’s e-commerce landscape.
