E-commerce company Flipkart has reportedly increased its IPO valuation target internally. The increase has been around a third to $60-70 billion.
The Walmart-owned Flipkart plans a U.S. listing in 2023, which was previously intended to be this year.
Flipkart To Launch IPO In 2023?
Previously, Flipkart had set an IPO valuation goal of $50 billion. Flipkart has internal plans of boosting valuations by focusing on its newest businesses online healthcare services and travel bookings. Apparently, this is the reason behind waiting for the IPO.
Flipkart acquired Indian travel booking website Cleartrip in 2021, and has launched a “Health+” app to offer medicines along with other healthcare products and services.
As per the source, “Flipkart thinks there is an even bigger upside of valuation than originally envisaged … The travel business has started showing great signs already for them.”
Sources have confirmed that the IPO valuation target could be as high as $70 billion, whereas a second source has said that it could be somewhere between $60 to 65 billion. The timeline might also be affected by the ongoing war between Russia and Ukraine.
CEO Confirms Flipkart Running As Per Expectations
According to news reports, Walmart CEO Doug McMillion recently reiterated the company’s plans to see Flipkart go for an overseas sale – either in Singapore or the US. Flipkart seems to be rejigging its board in preparation for the IPO. It recently appointed CEO Kalyan Krishnamurthy to the board, along with three others.
It also hived off its high-growth payments unit PhonePe into a separate entity and gave it the rights to appoint its own board of directors. Reports suggest that Walmart has hired Goldman Sachs to underwrite this IPO.
We had previously reported that Indian ecommerce website Flipkart is planning to go public in the US to raise around $ 10 billion.
When Walmart acquired Flipkart for $16 billion in 2018 it pledged to take the indian e commerce giant public in four years.
As per Walmart CFO Brett Biggs, Flipkart’s business was “performing almost exactly like we thought” and an “IPO is still very much in the cards”,
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