in

Flipkart Considers HQ Shift to India Ahead of IPO: Report

Eshop

Consumer giant Flipkart is considering shifting its headquarters from Singapore back to India in anticipation of its upcoming initial public offering (IPO), according to sources familiar with the matter. The move, reported by The Economic Times, would involve shifting Flipkart Pvt Limited, the Singapore-based holding entity, to India.

The e-commerce company, which is currently valued at $33 billion, has engaged in internal discussions about this potential move, which should gain momentum over the next few months.

“Recent IPOs of consumer companies have shown appetite for large consumer businesses on the domestic bourses and part of this is the consideration of moving the holding company to India. Flipkart is refining its strategies to reach profitability,” insiders familiar with the discussions said.

While Flipkart is not planning an IPO in 2024, relocating its headquarters could bring the company in line with the regulatory environment in India and pave the way for future plans to go public. The move is also expected to lead to tax benefits for the Indian government, similar to the recent move by Flipkart subsidiary PhonePe.

«In 2022, when PhonePe spun off from Flipkart and moved to Singapore, Walmart paid nearly $1 billion in local taxes,» the report pointed out.

Majority-owned (85%) by US retail giant Walmart, Flipkart has a strong operational presence in India across sectors including marketplace, logistics and payments.

In response to queries, Flipkart declined to provide specific details. However, recent developments in the consumer technology sector indicate a trend of companies returning to their home countries ahead of major corporate events.

Recommended Article
Captain Fresh Appoints Mathew George as CFO and Eyes Public Listing

Last week, Groww founder and CEO Lalit Keshre announced a similar change for his company, saying, “The company has completed shifting its headquarters back to India. Groww Group and its subsidiaries are now wholly based in India.

If Flipkart’s move goes ahead, it would mark a significant step to strengthen its ties with India and prepare for the next phase of growth in the public market.

Follow Startup Story

What do you think?

Deja una respuesta

Tu dirección de correo electrónico no será publicada. Los campos obligatorios están marcados con *

GIPHY App Key not set. Please check settings

Bring Your Kitchen to Life: Unveiling Unique Glass Screens

Supply Chain Startup 3SC secures Rs 31 crore in new funding round