Flipkart Raises IPO Valuation Target To $60-$70 Billion, Plans For US Listing Next Year

Indian e-commerce giant Flipkart has internally raised its IPO valuation goal from the earlier set target of $50 billion to the new and higher goal of $60-$70 billion, as per what sources with direct knowledge told Reuters. Amazon¡¯s competitor Flipkart now plans a U.S. listing in 2023 instead of this year.

Reasons For IPO Delay & Value Revision

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One of the sources reportedly 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", adding that the IPO valuation target could be as high as $70 billion, while another source said to Reuters that it could be between $60-65 billion.

In 2021, Flipkart had acquired Indian travel booking website Cleartrip and recently this week it had launched a "Health+" app to offer medicines as well as other healthcare products and services.

And, the main reason behind waiting for the IPO and delaying it to next year is Flipkart's internal plan to boost valuations further by focusing on two of its relatively new businesses, i.e. online healthcare services and travel bookings, as per the reported sources.

Sources familiar with Flipkart's plans also said the ongoing global market turmoil sparked by Russia-Ukraine crisis too has forced the Indian e-commerce giant to reconsider its timeline.

And according to sources, the IPO listing of Flipkart is now being planned for early-to-mid 2023. Flipkart is reportedly incorporated in Singapore and wants to list in the United States.

What Walmart CFO Had Said About The IPO

When asked about the IPO's timeline, CFO of Walmart, Brett Biggs had reportedly told at an analysts conference in December 2021 that 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.

For the uninitiated, Walmart had acquired a roughly 77% stake in Flipkart for about $16 billion in 2018, its biggest deal ever, and had said later that year that it could take the company public in four years.

Also Read: Here¡¯s Why India¡¯s Biggest IPO Is Facing A Delay

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