Walmart Inc., the majority investor in Flipkart, has reaffirmed its commitment to making an initial public offering (IPO) of the Bengaluru-based e-commerce giant. This determination comes after Walmart purchased Tiger Global Management’s remaining stake in Flipkart for $1.4 billion, according to Bloomberg News. The deal was struck at a valuation of approximately $35 billion for Flipkart, slightly lower than its $38 billion valuation in 2021.
In a statement, a spokesperson for Walmart expressed appreciation for Tiger Global’s involvement and support over the years. The company remains confident in Flipkart’s future and sees tremendous opportunities in India’s dynamic market. The spokesperson emphasized that Walmart is focused on building a healthy, sustainable, and profitable business for Flipkart’s long-term growth.
The IPO is a long-term ambition for Walmart, and the company believes it will happen at the right time. However, they have not specified a timeline for the offering. The decision to go public aligns with Walmart’s vision for Flipkart’s future as a dominant player in India’s digital economy.
Walmart entered the Indian e-commerce market in 2018 when it acquired a 77% stake in Flipkart for about $16 billion, directly competing with Amazon.com Inc., led by Jeff Bezos. Since then, both Walmart and Amazon have made significant strides in India’s growing digital economy, but profitability remains a challenge. The market has also witnessed competition from other players, such as Mukesh Ambani’s JioMart and Meesho, which is backed by Sequoia.
The battle for dominance in India’s digital space continues, with Flipkart and Amazon leading the charge. As Walmart prepares for a potential IPO for Flipkart, the focus remains on establishing a strong presence in the Indian market and driving sustainable growth in the rapidly evolving digital landscape.
