Walmart-owned Flipkart eyeing overseas IPO by 2021; aiming for $50 Bn valuation: Reports

Flipkart, the most prominent Indian-origin E-Commerce player now controlled by Walmart, is preparing for an overseas Initial Public Offering (IPO) by 2021 that could possibly make it a USD 50 billion company, as per reports. 

The Bengaluru based E-Commerce giant which competes with the likes of Amazon and Reliance Industries locally is aiming for a valuation in the $45-$50 billion range, according to reports. The current valuation of the company stands at USD 25 billion. 

Even though the IPO is a year away, reports state that the company has already started making preparations. One of the many preparations includes approaching international investment banks such as Goldman Sachs, Morgan Stanley among others as initial steps in taking the company public next year. 

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Preparing to consult external advisers

The preparations and discussions have been largely internal for now, but the company is preparing to consult external advisers soon. The company is expected to launch the IPO in late 2021 or early 2022, however, things remain a bit uncertain for now in the wake of the pandemic.

Flipkart is likely to choose between United States or Singapore, according to reports. While another report states that the company is incorporated in Singapore but may list in the United States where its parent company Walmart is headquartered. This could give access to larger pool of funds, the report said.

In a single largest foreign direct investment in India, Walmart had acquired about 77% stake in Flipkart back in 2018 for about USD 16 billion. This deal had made the founders of Flipkart Sachin Bansal and Binny Bansal billionaires. In July 2020, Flipkart raised an additional USD 1.2 billion from Walmart valuing the firm at USD 24.9 million.

The company is now waiting for the year's Big Billion Day sale which usually lasts for four to five days starting around October's festive season and ending with Diwali.

(Image credit: PTI)

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