Flipkart to Relocate Headquarters to India Before IPO

Flipkart to Relocate Headquarters Back to India

Flipkart, the Indian e-commerce company owned by Walmart, is preparing to move its corporate headquarters from Singapore back to India. This strategic shift precedes a planned initial public offering (IPO) on Indian stock exchanges.

Rationale Behind the Move

Flipkart stated that this relocation signifies a logical progression. It aims to align the company’s holding structure more closely with its primary operations and capitalize on the substantial growth potential within the Indian economy.

Originally founded in Bengaluru in 2007, Flipkart initially established its headquarters in Singapore in 2011. This decision was made to attract greater foreign investment and take advantage of favorable tax policies.

Benefits of Returning to India

A Flipkart spokesperson emphasized that returning to India will enhance the company’s focus and responsiveness. This will allow them to better serve customers, sellers, partners, and communities.

The move is intended to further contribute to the expansion of India’s digital economy and foster entrepreneurship throughout the nation.

Timeline and Approvals

The relocation is contingent upon receiving the necessary regulatory approvals. Flipkart has not yet announced a specific timeframe for the completion of this process.

However, the company anticipates filing for its IPO in India sometime in the coming year.

Trend of Headquarters Relocations

This decision follows a similar move by PhonePe, a Walmart-backed company that separated from Flipkart in late 2022. PhonePe also relocated its headquarters to India from Singapore in 2022.

Other startups, including Zepto and Groww, have recently chosen to base their headquarters in India. This trend is driven by their preparations for public listings on Indian stock exchanges.

Current IPO Market Conditions

Despite the positive outlook, India’s public market is currently experiencing some adjustments. Macroeconomic factors are also influencing market conditions.

Last year, IPOs accounted for approximately $19 billion of the total $70 billion in equity deals completed in India. Eleven IPOs were priced at over $500 million, according to a report by Goldman Sachs.

Investor Optimism

Despite recent market corrections, investors remain optimistic about the growth prospects of the Indian market. Numerous companies are currently preparing to launch IPOs in the near future.

Valuation Considerations

Sudarshan Ramakrishnan, co-head of India investment banking at Goldman Sachs, noted that a more favorable valuation environment is encouraging companies to go public. Many unicorns previously considering U.S. listings are now opting for India due to perceived better valuation support.

Recent Funding

Flipkart’s decision arrives nearly a year after securing $350 million in funding from Google. This investment was part of a larger $1 billion funding round initiated in 2023.

The startup’s most recent valuation stands at $36 billion.