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Walmart prepares for $10 billion Flipkart IPO in the US: Report

Walmart, in May 2018, acquired a 77 percent stake in Flipkart for $16 billion.

December 07, 2020 / 10:47 PM IST

Walmart is preparing for ecommerce major Flipkart's $10 billion initial public offering (IPO) in the US and has hired Goldman Sachs to assist with the listing.

The US retail giant is looking to sell around 25 percent in Bengaluru-based Flipkart, Mint reported.

"Work on the IPO (initial public offering) is in full swing and the advent of the pandemic has only hastened the process, given the spectacular surge in demand on e-commerce platforms," a source told the paper.

Moneycontrol could not independently verify the story.

A spokesperson for Goldman Sachs declined to comment, and a Walmart spokesperson had not yet responded when contacted by Mint.

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Also read: Why Flipkart Acquired Walmart India And Other Key Questions Answered

Walmart had in May 2018 acquired a 77 percent stake in Flipkart for $16 billion. The Arkansas-based retailer in 2020 raised its stake to around 82 percent after a $1.2 billion financing round.

In July 2020, Flipkart acquired Walmart India, which manages the Best Price cash-and-carry stores. The Indian e-tailer, which is registered in Singapore, also launched Flipkart Wholesale, a digital business-to-business (B2B) marketplace.

Also read: Festive Sale | E-Tailers Clock $4.8 Billion In GMV, Flipkart Sells 110 Products Per Second

Online sales in India have surged during the COVID-19 pandemic, as people are trying to avoid crowded grocery stores, shops, and malls.

E-tailers generated $4.8 billion in gross merchandise value (GMV) during the recent festive season sale, according to consultancy firm Forrester Research.
Moneycontrol News
first published: Dec 7, 2020 09:24 am
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