Flipkart, the Indian e-commerce company owned by Walmart, is planning to relocate its headquarters back to India from Singapore as it prepares for an initial public offering (IPO) on Indian stock exchanges. This strategic move, announced on Monday, is deemed a natural progression that realigns Flipkart’s holding structure with its primary operations and leverages the promising opportunities within the Indian economy.
Originally established in Bengaluru in 2007, Flipkart transferred its headquarters to Singapore in 2011. This relocation aimed to attract increased foreign investments and gain tax benefits, while also navigating the political and bureaucratic landscape in India more effectively. A spokesperson for Flipkart stated that the company’s return to India will enhance its ability to focus on serving customers, sellers, partners, and communities, thereby supporting the nation’s expanding digital economy and entrepreneurial landscape.
The transition is contingent upon necessary approvals, with specific timelines yet to be disclosed. However, it is anticipated that Flipkart will file for an IPO in India sometime next year. In 2022, PhonePe, a company previously under Flipkart, relocated its headquarters to India from Singapore. This trend has been followed by other startups like Zepto and Groww, as they seek public listings on Indian stock exchanges.
Despite the enthusiasm, the current Indian public market is experiencing corrections due to macroeconomic conditions, unlike the previously favorable environment. In 2022, IPOs accounted for about $19 billion out of the record $70 billion in equity deal volume in India, with 11 IPOs being priced above $500 million, according to a Goldman Sachs report.
Investors remain hopeful about the Indian market’s expansion, as several companies are planning to go public this year and the next. Sudarshan Ramakrishnan, co-head of India investment banking at Goldman Sachs, noted that India’s supportive valuation environment has prompted many unicorns to favor domestic listings over U.S. markets.
Flipkart’s decision to shift its headquarters comes nearly a year after securing a $350 million investment from Google as part of a funding round that raised nearly $1 billion, valuing the company at $36 billion.
