USA’s biggest retailer, Walmart which has a majority stake in the Indian e-commerce retailer Flipkart has given a go-ahead for Flipkart’s Initial Public Offering (IPO). Even though Walmart has said it is open to an IPO, they have not specified a timeline for the share sale.
International President and CEO of Walmart, Judith McKenna while speaking at the DBAccess Global Consumer Conference on June 7 said that Flipkart and the PhonePe, a growing payment app are doing well in India. In addition to that McKenna also said that since the acquisition of the companies, they have made it clear that they would eventually open to an IPO even if there is no timeline in place. The focus as of now is on building a strong business and ensuring sustainable long-term growth for the companies mentioned by McKenna. PhonePe has just crossed the 300 million users mark in five years mentioned McKenna.
The Bengaluru-based e-commerce platform, Flipkart received an investment of $16 billion from Walmart in 2018 to get a majority stake of 77%. The e-commerce firm is now valued at $24.9 billion after it led a $1.2 billion profit in July 2020.
SoftBank, a Japanese conglomerate, has proposed a deal to invest in Flipkart with funding worth $1.2 billion to $1.5 billion under its Vision Fund 2, as reported by Mint and VCCircle.