Indian E-commerce Giant Flipkart Eyes US Listing By 2022: Report

Home-grown e-commerce retail giant Flipkart is looking to make a stock market debut in the US by 2022, which is likely to pave the exit for Walmart, according to an ET report.

Walmart invested about $16 billion in the Bangalore-headquartered company in 2018 for 77 per cent stake – marking one of the largest e-commerce transactions globally.

Flipkart group CEO Kalyan Krishnamurthy reportedly informed the top brass of the company about the timeline of the proposed IPO at its recently held board meeting on the sidelines of the US retailer’s annual shareholders conference, the ET report said, quoting sources.

Further, the report added that Krishnamurthy also stressed on issues including compliance and profitability as the company charts out its plan to go public.

This is particularly significant given that Walmart, of late, has seen its gross profit rate and operating income come down for its global business operations that can be attributed to Flipkart’s inclusion in its financial performance.

It is understood that initial discussions have already begun between the Flipkart CEO and the senior management to chalk out a strategy to take the company through the IPO route.

The US retailer recently made headlines for increasing its stake in Flipkart by buying a minority stake from Binny Bansal for $76 million through its Luxembourg entity, FIT Holdings SARL.

Bansal, who exited the company after the Walmart transaction last year, currently holds a 3.52 per cent stake in the company.