Info-tech

No immediate IPO plans; focus now is on growing India market: Flipkart

PTI New Delhi | Updated on June 24, 2019 Published on June 24, 2019

An initial public offering (IPO) is part of Flipkart’s long-term strategy, but the Walmart-owned company is currently focussed on getting 200-300 million new Indians into the e-commerce fold.

The statement comes amid reports that Flipkart, which is locked in an intense battle with US giant Amazon for leadership in the Indian market, is looking at tapping into the US equity market by 2022.

“An IPO has always been part of Flipkart’s ambitions and long-term strategy but right now, we don’t have a time frame on that. Flipkart is currently focussed on driving the growth of e-commerce in India to get 200-300 million new customers into the e-commerce fold,” a Flipkart spokesperson said in an e-mailed statement.

Last May, Walmart Inc had announced buying 77 per cent stake in Flipkart for about $16 billion (₹1.05 lakh crore), its biggest deal which will give the US retailer access to India’s e-commerce market that is estimated to grow to $200 billion within a decade.

Operating income falls

Walmart saw its operating income in international business falling in the first quarter of 2019-20 over the year-ago period, on account of Flipkart’s inclusion in this year’s financial performance, among other factors.

The American retail giant, however, has reiterated that it continues to be committed to the Indian market given the huge opportunity that the country presents.

“I continue to be excited about the opportunity I see with Flipkart and PhonePe. I’m impressed with the team and their ability to innovate for customers with speed,” Walmart President and Chief Executive Officer Doug McMillon had said in a recent investor call.

Published on June 24, 2019

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