Walmart's Indian e-commerce company Flipkart has internally raised its IPO valuation target by around a third to $60-70 billion, and now plans a US listing in 2023 instead of this year. The listing is now being planned for early-to-mid 2023.
The reason behind waiting for the IPO is due to Flipkart's internal plan to boost valuations further by focusing on two of its relatively new businesses -- online healthcare services and travel bookings. Flipkart acquired Indian travel booking website Cleartrip last year, and this week launched a ‘Health+’ app to offer medicines as well as other healthcare products and services.
Flipkart had earlier set an IPO valuation goal of $50 billion. The ongoing global market disruption sparked by the Russia-Ukraine crisis also forced the company to reconsider its timeline.
When asked about the IPO's timeline, Walmart CFO Brett Biggs said that Flipkart's business was “performing almost exactly like we thought” and an “IPO is still very much in the cards”, without specifying when the company will list.
Last year, Flipkart raised $3.6 billion in a funding round, giving it a valuation of $37.6 billion. The fund raising helped in strengthening the company's financial position, and it had enough cash right now for expansion, meaning an IPO wasn't a necessity at this stage.
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