Walmart-owned Indian e-commerce startup Flipkart, which competes closely with Amazon in the South Asian market, is planning to relocate its headquarters from Singapore back to India. This move aligns with the company’s preparations to file for an initial public offering (IPO) on Indian stock exchanges.
On Monday, Flipkart stated that this transition reflects a natural progression, aligning its corporate structure with its core operations and the significant potential of the Indian economy.
Flipkart, established in 2007 in Bengaluru, originally moved its headquarters to Singapore in 2011 to attract more foreign investment, benefit from tax advantages, and effectively navigate bureaucratic and political challenges in India.
A spokesperson for Flipkart mentioned that as a company founded and developed in India, this shift will enhance its focus and agility in serving customers, sellers, partners, and communities, thereby contributing further to India’s growing digital economy and entrepreneurial ecosystem.
The relocation remains subject to necessary approvals, and no specific timeline has been provided. However, Flipkart is anticipated to file for an IPO in the country sometime next year.
In 2022, PhonePe, backed by Walmart and separated from Flipkart in late 2022, relocated its headquarters from Singapore to India. Other startups like Zepto and Groww have also moved their headquarters to India in recent months as they aim for public listings on the Indian stock exchanges.
Currently, the Indian public market environment is not as favorable as it was until late last year, experiencing some corrections due to macroeconomic conditions. IPOs accounted for approximately $19 billion of a record $70 billion in equity deal volume in India last year, with 11 IPOs exceeding $500 million, according to a Goldman Sachs report.
Despite these conditions, investors remain optimistic about the growth potential in the Indian market, with several companies preparing to go public this year and next.
Sudarshan Ramakrishnan, co-head of India investment banking at Goldman Sachs, noted that the supportive valuation environment has encouraged issuer activity, with many unicorns opting for IPOs in India over the U.S. due to perceived better valuations.
Flipkart’s latest strategic move follows its recent fundraising of $350 million from Google, part of a nearly $1 billion funding round initiated in 2023. In the last investment round, the startup was valued at $36 billion.
