Walmart is preparing for e-commerce major Flipkart’s $10 billion initial public offerings (IPO) in the US and has hired Goldman Sachs to assist with the listing. The US retail giant is looking to sell around 25 percent in Bengaluru-based Flipkart.
According to the sources, the Bengaluru-based online retail platform is set to dilute around 10 percent of its shares to raise $ 1 billion and for a valuation of approximately $35-40 billion.
“An IPO has always been part of Flipkart’s long-term strategy. However, the focus at present is on growth and democratizing commerce in India through technology, while continuing to unlock customer value. The biggest areas of investment for Flipkart will continue to be in technology, operations, and new capabilities,” said the e-commerce giant.
The development comes amid reports that retail giant Walmart that bought a 77 percent stake in Flipkart back in 2018 for $ 16 billion is preparing for Flipkart’s initial public offering in the US.
In July 2020, Flipkart acquired Walmart India, which manages the Best Price cash-and-carry stores. The Indian e-tailer, which is registered in Singapore, also launched Flipkart Wholesale, a digital business-to-business (B2B) marketplace.
Online sales in India have surged during the COVID-19 pandemic, as people are trying to avoid crowded grocery stores, shops, and malls.
E-tailers generated $4.8 billion in gross merchandise value (GMV) during the recent festive season sale, according to consultancy firm Forrester Research.