Flipkart Relocation Approved: IPO Plans Advance

Flipkart's Headquarters Relocation to India

Flipkart is nearing the completion of securing the necessary regulatory permissions to move its corporate headquarters from Singapore back to India. This transition is anticipated to be finalized later this year.

According to sources, the e-commerce giant, owned by Walmart, is preparing for a potential Initial Public Offering (IPO) in India next year. The move is a significant step towards this goal.

Regulatory Approvals and Timeline

In-principle approvals for the redomiciling process have been granted by a Singapore court. Multiple hearings concerning the relocation have already been conducted at India’s National Company Law Appellate Tribunal (NCLAT).

Flipkart aims to finalize this transition within the next two months. This timing aligns with India’s important festive sales period and prepares the company for a public listing potentially as early as 2026.

Strategic Rationale for the Move

Returning the headquarters to India allows companies to better comply with evolving local regulations. It also fulfills requirements for listing on domestic stock exchanges.

Tapping into India’s public markets is strategically advantageous. The country boasts a growing base of retail investors and an increasing demand for IPOs. This demonstrates the increasing sophistication and appeal of India’s financial markets.

Initiation and Parallel Processes

The relocation process was initiated concurrently in both India and Singapore approximately two and a half months ago. This followed the board’s approval of the headquarters relocation in April.

Following a Growing Trend

In 2022, PhonePe, previously part of Flipkart, successfully relocated its headquarters from Singapore to India. The fintech company recently submitted confidential IPO documents to the Securities and Exchange Board of India (SEBI).

PhonePe reportedly intends to raise ₹120 billion (around $1.35 billion) through its IPO.

Other startups, including Zepto and Groww, have also recently moved their headquarters to India in anticipation of public offerings on Indian stock exchanges.

Groww is poised to be the first Indian startup to list domestically after relocating from the U.S., with its IPO expected later in the current year.

Recent Funding and Valuation

Flipkart’s decision to relocate follows a $350 million investment from Google in 2023, as part of a larger $1 billion funding round.

The company’s most recent valuation, based on this investment, stands at $36 billion. This makes it the most highly valued startup currently undergoing a redomiciling process.

Flipkart has not yet issued a public statement regarding these developments.