Flipkart ups IPO valuation target to $60- bn, eyes 2023 US listing
Walmart’s Indian e-commerce company Flipkart has internally raised its IPO valuation target by around a third to $60-70 billion, and now plans a US listing in 2023 instead of this year, two sources with direct knowledge of the plan told Reuters.
The main reason for waiting for the IPO is due to Flipkart’s internal plan to boost valuations further by focusing on two of its relatively new businesses – online
healthcare services and travel bookings, two of the sources with direct knowledge said.
Flipkart, which competes with Amazon.com Inc in India’s booming e-commerce space, had earlier set an IPO valuation goal of $50 billion, Reuters has reported.
The first source said the IPO valuation target could be as high as $70 billion, while the second said it could be between $60-65 billion.
Flipkart acquired Indian travel booking website Cleartrip in 2021, and this week launched a “Health+” app to offer medicines as well as other healthcare products and services.
“Flipkart thinks there is an even bigger upside of valuation than originally envisaged. The travel business has started showing great signs already for them,” said the first source.
The first source said the IPO valuation target could be as high as $70 billion, while the second said it could be between $60-65 billion.
The IPO planning comes amid growing protests from Indian brick-and-mortar retailers that Flipkart and Amazon bypass federal regulations and favour select sellers, allegations the companies deny. India is also working on a slew of e-commerce sector regulations that could spook foreign giants.
Walmart acquired a roughly 77 percent stake in Flipkart for about $16 billion in 2018 – its biggest deal ever – and said later that year that it could take the company public in four years.
Source: Money Control
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