Flipkart’s US based parent company Walmart is evaluating the optimal timing for an initial public offering and taking preparatory steps to set the scene for it. The business has also emphasised its commitment to the Indian market.
“We are looking at and exploring when will be the right time to IPO that business (Flipkart),” said Walmart’s international president and CEO Kath McLay, Indian Retailer Bureau reported. “But now there’s strong growth both in Flipkart and in PhonePe, and we’re excited about the India market.”
Flipkart is currently in the process of moving its headquarters from Singapore back to India which would be in preparation for a future IPO, the Economic Times reported. Walmart also reported that Flipkart experienced double digit growth in the recent quarter, the business’ chief financial officer John David Rainey noted on an analyst call, ET Tech reported. Flipkart’s fashion arm Myntra has become profitable in terms of earnings before interest, tax, depreciation, and amortisation for the past two quarters.
Walmart acquired the Flipkart business in 2018 for approximately $16 billion to tap into the swift growth in the Indian online sphere. Flipkart’s main competition in India is US owned Amazon India but homegrown businesses are also increasingly expanding in the e-commerce sector including Reliance Industries Limited and Tata Group which run a range of online platforms including Ajio and Tata Cliq respectively.
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