Flipkart, the Walmart-owned Indian e-commerce enterprise that competes vigorously with Amazon in the South Asian market, is poised to relocate its headquarters from Singapore back to India as it prepares to initiate an IPO on Indian stock markets.
On Monday, Flipkart said that the decision “signifies a natural progression, aligning our ownership structure with our fundamental operations and the immense potential of the Indian economy.”
The e-commerce behemoth, which started operations in 2007 in Bengaluru, relocated its headquarters to Singapore in 2011 to enhance foreign investment, capitalize on tax benefits, and more effectively manage bureaucratic obstacles and political issues in India.
A Flipkart representative said, “As a company originating and developing in India, this transition will augment our focus and agility in serving our customers, sellers, partners, and communities, thereby continuing our contribution to the nation’s expanding digital economy and entrepreneurship.”
The move is contingent upon necessary permits, the company said, without providing a particular date. Flipkart is anticipated to submit an IPO application in the nation next year.
In 2022, PhonePe, supported by Walmart and having separated from Flipkart in late 2022, relocated its headquarters from Singapore to India. Numerous more businesses, such as Zepto and Groww, have recently transferred their headquarters to India in pursuit of public listings on Indian stock markets.
Currently, India’s public market environment is less attractive than it was until late last year, as it is undergoing adjustments and is influenced by macroeconomic factors.
Initial Public Offerings constituted almost $19 billion of the unprecedented $70 billion equity transaction volume achieved in India last year, with 11 IPOs valued at over $500 million, according to a research by Goldman Sachs.
Investors remain enthusiastic on the development potential of the Indian market, with several firms poised to go public this year and the next.
The favorable valuation environment has stimulated issuer activity. Numerous unicorns contemplating a public offering in the U.S. transitioned to India, seeing it as offering superior valuations,” stated Sudarshan Ramakrishnan, co-head of India investment banking at Goldman Sachs.
Flipkart’s recent action follows roughly one year after securing $350 million from Google during an investment round approaching $1 billion, initiated in 2023.
The business received a valuation of $36 billion in the most recent financing round.
