Flipkart’s parent Walmart said it is evaluating the right time for taking the Indian ecommerce firm public. “We are looking at and exploring when will be the right time to IPO that business (Flipkart). But now there’s strong growth both in Flipkart and in PhonePe, and we’re excited about the India market,” said Kath McLay, president and CEO, Walmart’s international.
On May 13, ET reported that Flipkart was preparing to shift its domicile back from Singapore to India. The move is linked to its eventual goal of an initial public offering.
Walmart’s chief financial officer John David Rainey said during the US-based firm’s quarterly analyst call that Flipkart grew by double digit for the first quarter ended April 30.
Walmart added that Flipkart’s unit Myntra has been profitable on an earnings before interest, taxes, depreciation and amortisation (Ebitda) basis for the past two quarters now. Myntra competes with Reliance Retail-owned Ajio in the online fashion space. Flipkart acquired Myntra in 2014.
Flipkart Pvt Ltd is the holding company based in Singapore. Multiple units in India house Flipkart’s marketplace, logistics, payments and other ecommerce verticals.
Payments major PhonePe is also owned by Walmart. In late 2022, PhonePe separated from the Flipkart Group and moved domicile back from Singapore. At that time, Walmart paid nearly $1 billion in local taxes.
Meanwhile, Walmart’s revenue for the first quarter rose 6% to $162 billion, up from $152 billion a year ago. The firm reported profits of $5 billion for the quarter, which compares with $1.7 billion in the same period last year.
