Walmart gears up for $10 billion Flipkart IPO in US

The much anticipated $10 billion Flipkart IPO (initial public offering) could be out soon as Walmart, which owns the e-tailer, has hired Goldman Sachs to assist with the listing in the United States (US).

The American retail player is mulling to divest around 25% of its stake in the Bengaluru-based Flipkart.

"Work on the IPO (initial public offering) is on in full swing and the advent of the pandemic has only hastened the process, given the spectacular surge in demand on e-commerce platforms," a source told Mint.

Also Read: Flipkart Wholesale in final stages of consolidating Walmart India in its operations

If successful, it will be the largest initial offering by a company based in India on overseas exchanges. The $10 billion IPO will more than double Flipkart's valuation to $40 billion since Walmart's acquisition of the e-tailer.

The initial offering will give an opportunity to (Flipkart's) minority stakeholders to sell or pare their investments.

A Flipkart spokesperson told the publication that "an IPO has always been part of Flipkart's long-term strategy", however, the company is presently focusing on "growth and democratising commerce in India through technology, while counting to unlock customer value."

Also Read: PhonePe to be spun off from Flipkart, valued at $5.5 billion

Meanwhile, Walmart is expected to use the stake sale proceeds to expand Flipkart's business. The Indian e-commerce giant's payments unit, PhonePe, is also mulling to go public by 2023, looking to list on a US stock exchange at a valuation of $10 billion.

The Arkansas-based retailer had in May 2018 acquired a 77% stake in Flipkart for $16 billion, raising it (stake) to around 82% in 2020 following a $1.2 billion financing round.

In July (2020), Flipkart acquired Walmart India, which operates the Best Price cash-and-carry stores. The Indian e-commerce giant, which is registered in Singapore, also launched its digital business-to-business (B2B) marketplace called Flipkart Wholesale.

Also Read: Flipkart eyes overseas IPO listing as early as 2021