Flipkart’s IPO is on the cards. The Walmart-owned company plans to list in late 2022. So should investors consider Flipkart stock? Here’s what we know…
Flipkart IPO: About the Company
Flipkart is an Indian e-commerce marketplace. The company began by focusing on selling books. However, it has become a leading market. In addition, the company is considered a close competitor to Amazon (Nasdaq: AMZN) in India.
The platform offers more than 80 million products in more than 80 categories. Flipkart’s products include electronics, video games, apparel, food, furniture, toys, home appliances and more.
To date, the company has 100 million registered users, recording more than 10 million daily visits. Thanks to Flipkart technology, the company is able to send 8 million shipments per month. Moreover, these numbers are increasing. As a result, many investors are wondering when they will be able to buy Flipkart shares.
Binny and Sachin Bansal founded Flipkart in 2007. However, walmart (NYSE: WMT) acquired the company in 2018. Here are the details…
Walmart Acquires Flipkart IPO for $16 Billion
In 2018, Walmart acquired 77% of Flipkart shares for $16 billion. Flipkart held a valuation of $20 billion at the time. It’s the biggest e-commerce acquisition in history.
The acquisition gave Walmart a key stake in the company. Currently, the American distribution giant owns 75% of Flipkart.
At the time of the acquisition, Walmart announced its plans for Flipkart…
While the immediate focus will be on serving customers and growing the business, Walmart supports Flipkart’s ambition to become a publicly traded, majority-owned subsidiary in the future.
It’s been almost four years since the acquisition. Moreover, investors have been on the edge of their seats for Flipkart shares for years now. Meanwhile, amid speculation over Flipkart’s IPO, Walmart announced it was considering raising a pre-IPO funding round. Let’s take a look at the finances…
Flipkart Plans to Increase Pre-IPO Funding Round
The company is looking to raise a pre-IPO round in the near future to benchmark its valuation before it hits the public market. However, the company is already worth $37.6 billion.
The company snagged that valuation in July 2021 after raising $3.6 billion from Softbank and other investors. Flipkart’s current valuation is more than double its previous valuation from less than a year ago.
Additionally, the company is seeking a $50 billion valuation in the Flipkart IPO. If successful, it would be the largest consumer tech IPO in India. And this presents a unique opportunity for Flipkart stock.
Flipkart IPO Eyes $50 Billion Valuation
So when can investors expect Flipkart stock? Walmart executive vice president and chief financial officer Brett Biggs said a Flipkart IPO was “very much in the cards” in December…
The activity (Flipkart) works almost exactly as we thought. An IPO is still on the cards for this company. Like everything else; it is time. Is the business exactly where you want it? Is the market right? All of these things need to be in what you do with an IPO.
IPO and letting our associates own a share of the business, making it a more local business in India – all of those things are important to us, longer term. And nothing about that has changed.
He did not specify a time frame. However, CEO Kalyan Krishnamurthy reportedly said Flipkart stock could arrive as early as November or December 2022.
Moreover, Krishnamurthy reportedly stated that the IPO of Flipkart will take place before March 2023. It depends on market conditions and other external factors.
There has been no official announcement regarding Flipkart’s IPO. However, the e-commerce giant is one of the most anticipated IPOs of 2022, so investors should start preparing to invest in the stock. You can learn more about the IPO process in this step-by-step guide to going public.
As always, be sure to do your research before investing. IPOs can be volatile for the first few months and stock prices are constantly changing.
Also, if IPO investing interests you, check out our major recent IPOs and IPO timeline. We update the calendar daily to give you the latest news on upcoming and filed IPOs.
Aimee Bohn is a graduate of the College of Business and Economics at Towson University. His background in marketing research helps him uncover interesting trends. Over the past year, she has primarily focused on researching IPOs and other trends.