Walmart (NYSE:WMT) is reportedly gearing up for a Flipkart initial public offering (IPO) in the near future.
According to recent rumors, Walmart has brought in Goldman Sachs to aid it with a Flipkart IPO. The reports say that the company is choosing now to push for an IPO as online shopping businesses gain strength during the coronavirus pandemic.
It’s worth noting that Walmart has always been planning to take Flipkart public. The company said as much in 2018 after making a major investment in it. WMT planned to take the company public in four years and appears to want to do so sooner rather than later, reports Mint.
With Walmart eyeing a Flipkart IPO, investors are sure to take an interest in the company. Here’s a quick breakdown of Flipkart.
- Flipkart is an e-commerce company based in Bangalore, Karnataka, India.
- However, it’s registered in Signapore, which should allow it to go public in the U.S. and avoid India’s restrictions.
- The company was founded in 2007 and at that time it focused on selling books online.
- Since then it has grown greatly and now offeres more than 80 million products across over 80 categories.
- Walmart’s 2018 investment in Flipkart saw it acquiring a 77% stake in the company for $16 billion.
- The online retailer recently held a round of funding earlier this year that brought in $1.2 billion.
- Walmart was the leader of that funding and the e-commerce company plans to expand its business with the cash.
- That valued the company at $24.9 billion.
- The current expectation is for the IPO to boost the company’s value up to $40 billion.
- Previous IPO plans pinned Flipkart as going public in late 2021 or early 2022.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.