By: ABP News Bureau | Updated at : 07 Apr 2022 03:50 PM (IST)
Flipkart, which is incorporated in Singapore, wants to list in the US by early-to-mid 2023. Image: Getty
New Delhi: Indian e-commerce giant Flipkart has internally raised its initial public offering (IPO) valuation target by around a third to $60-70 billion and plans a listing in the US by 2023 instead of this year.
Quoting two sources, Reuters reported that Walmart’s Indian e-commerce firm that competes with Amazon Inc, had earlier set an IPO valuation goal of $50 billion.
According to the report, the prime reason for waiting for the IPO is due to Flipkart’s internal plan to boost valuations further by focussing on two of its relatively new businesses, online healthcare services and travel bookings. In 2021, Flipkart acquired Indian travel booking website Cleartrip, and this week launched a Health+ app to offer medicines as well as other healthcare products and services.
The sources have said that the turmoil in market triggered by the ongoing war between Russia and Ukraine also forced Flipkart to reconsider its IPO timeline.
Flipkart, which is incorporated in Singapore, wants to list in the US by early-to-mid 2023.
One of the sources said, "Flipkart thinks there is an even bigger upside of valuation than originally envisaged ... The travel business has started showing great signs already for them." The IPO valuation target could be as high as $70 billion or could be between $60 billion and $65 billion, according to the sources.
The news agency tried to reach Flipkart for comments, however, the e-talier didn't respond to Reuters’ request for comment.
In December 2021, Walmart CFO Brett Biggs had said Flipkart's business was "performing almost exactly like we thought" and an "IPO is still very much in the cards", without specifying when the company will list.
Walmart acquired nearly 77 per cent stake in Flipkart for about $16 billion in 2018, its biggest deal ever, and said later that year that it could take the company public in four years.
Flipkart raised $3.6 billion in a funding round, giving it a valuation of $37.6 billion last year. That fundraising helped bolster the company's financial position and it had enough cash right now for expansion, meaning an IPO wasn't a necessity at this stage, one of the sources added.
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