TheNFAPost Podcast

Walmart-owned Indian e-commerce giant Flipkart is exploring options to list in India or abroad, according to sources.

The company is set to dilute around 10 percent of its shares to raise $ 1 billion and for a valuation of approximately $35-40 billion.

The IPO will give a boost to the Walmart-owned Indian e-commerce giant that is facing stiff competition from rivals including Amazon.

“An IPO has always been part of Flipkart’s long-term strategy. However, the focus at present is on growth and democratizing commerce in India through technology, while continuing to unlock customer value. The biggest areas of investment for Flipkart will continue to be in technology, operations, and new capabilities,” reported CNBC-TV18.

The firm deals in ‘cash and carry trading, wholesale trading’ and in wholesale distribution of mobile, television, laptop, tablet, mobile accessory, footwear, clothing, and others.

Like most of the e-commerce entities, Flipkart witnessed a significant rise in sales after the central government clamped nationwide lockdown to counter the spread of the COVID-19 pandemic.

Flipkart’s wholesale arm Flipkart India Private Ltd had seen revenue for FY20 jump 12 percent year-on-year to Rs 34,610 crore, while losses had decreased by 18 percent to Rs 3,150 crore during the same fiscal.

Flipkart’s total expenses were Rs 37,760 crore, up 9 percent year-on-year.

Flipkart has been pushing hard on its wholesale business, and earlier this year, it had acquired the business of Walmart India, which operates 28 B2B modern wholesale stores under the brand name of ‘Best Price’.

Flipkart had launched Flipkart Wholesale, a B2B online marketplace post the acquisition.

Walmart India had recently reported its 2019-20 fiscal revenues at Rs 4,926 crore, a 20 percent jump since the last financial year.

The company further reported a net loss of Rs 299 crore during the same period, a 74 percent increase from the last fiscal year. Its total expenses for the fiscal were Rs 5,225 crore.

Previous articleConnectivity Solution Provider Brightstar India Joins Black Box Partner Network
Next articleWhatsApp Users Likely To Lose All Access If they Don’t Agree To Terms Of Service in 2021

LEAVE A REPLY

Please enter your comment!
Please enter your name here