Walmart's Flipkart explores US listing through SPAC deal
The Bengaluru-based online retailer's advisors have approached several SPACs. Flipkart may seek a valuation of at least $35 billion in a blank-check transaction.
March 04, 2021 / 04:16 PM IST
In a bid to quicken its listing process, Walmart Inc's Flipkart is now exploring the option of going public in the United States through a merger with a blank-check company, reported Bloomberg.
The Bengaluru-based online retailer's advisors have approached several special purpose acquisition companies (SPACs) and are weighing US initial public offering (IPO). Flipkart may seek a valuation of at least $35 billion in the blank-check transaction, the report added.
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By exploring a US listing through SPAC deal, the e-commerce firm is joining other Indian firms like online grocer Grofers. Earlier last week, ReNew Power agreed to merge with a US-listed SPAC in a deal which may give the renewable power producer an enterprise value of $8 billion.
Following the merger with SPACs through the help of shell firms, Walmart would be able to take its India unit to market at a faster pace than the usual IPO route. Nomura Holdings Inc's head of investment banking for India Utpal Oza recently stated that by the end of 2021 around 10 Indian companies could go public through SPAC deals.
Flipkart started its operations in India in 2007 and currently sells over 80 million products on its platforms. In 2018, US firm Walmart acquired a majority stake in Flipkart in a $16- billion deal.