Jun 24, 2019
Flipkart plans for US listing by 2022
Jun 24, 2019
The Walmart-owned e-commerce business Flipkart plans to launch an initial public offer in the US by 2022.
Flipkart’s board of directors made the decision at a meeting on the sidelines of the Walmart annual shareholder conference in Bentonville, Arkansas in the US, sources told ET Bureau.
Flipkart Group’s CEO Kalyan Krishnamurthy has also formally relayed this information and IPO timeline to the business’ executive team, the sources said. As part of its roadmap to an IPO, Flipkart will need to focus on compliance and profitability over the coming few years, sources told Krishnamurthy said.
Walmart acquired a 77 percent stake in Flipkart just over a year ago and now owns Flipkart as well as its online fashion businesses Myntra and Jabong. Although Walmart has consistently said that it is committed to Flipkart and that any losses caused by the deal are as expected, the IPO could be a way for it to partly exit the business.
“In the last two weeks there have been discussions between the Flipkart CEO and his key people to chart out a plan to make the company IPO ready,” said one of the sources. “Compliance and profitability will take centre-stage going forward. The top management has to start tailoring the company towards this and that’s the message coming from Walmart.”
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