Flipkart says IPO long-term strategy, currently focused on driving ecommerce growth in India
An initial public offering (IPO) is part of Flipkart's ambition and long-term strategy, but the Walmart-owned company is currently focussed on getting 200-300 million new Indians into the ecommerce 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 focused on driving the growth of ecommerce in India to get 200-300 million new customers into ecommerce fold," a Flipkart spokesperson said in a statement.
Walmart Inc in May last year had announced that it is buying 77 percent stake in Flipkart for about $16 billion (Rs 1.05 lakh crore), its biggest deal which will give the US retailer access to Indian ecommerce market that is estimated to grow to $200 billion within a decade.
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.
Recently, American retail giant Amazon infused Rs 450 crore into its payments unit in India, Amazon Pay, according to regulatory documents. The funding comes at a time when companies like Paytm, Flipkart-owned PhonePe, Google Pay, and others are making significant investments to tap the booming digital payments market in India.