Flipkart said in a statement that the move aims to increase focus on consumers, sellers, partners and communities to further boost India’s rising digital economy and entrepreneurship
E-commerce giant Flipkart announced to shift its holding company back to India from Singapore on April 22. The Walmart-backed e-commerce giant, mentioned in a statement, that the move aims to align its corporate structure with its core business and tap into the Indian economy’s huge potential. The move comes at a time when there are speculations that the e-commerce giant is eyeing a public listing in India.
“Flipkart...has shared its intention to relocate its holding company from Singapore to India...This move represents a natural evolution, aligning our holding structure with our core operations, the vast potential of the Indian economy and our technology and innovation-driven capabilities to foster digital transformation in India,” the e-commerce giant said in a statement.
The shift will increase the Singapore-headquartered company’s focus on Indian consumers, sellers, partners and communities to further boost India’s rising digital economy and entrepreneurship, the company added. The giant hasn’t disclosed the timeline of the shift.
The 2007-founded e-commerce giant had moved its holding company to Singapore in 2011 to tap into international capital and benefit from the country’s favourable tax regime.
Prior to this, a similar route was taken by Flipkart’s former subsidiary PhonePe, which had moved its base to India in 2022.
The development comes at a time when Walmart-backed Flipkart is gearing up for an initial public offering (IPO), most likely in the coming 12 to 15 months, the Business Standard reported, citing sources. The e-commerce is eyeing to benefit from India’s IPO boom. Under the present regulatory norms, India does not allow dual listings. This condition makes it necessary for companies eyeing to go public to have domestic domicile.
Walmart had first acquired a controlling stake in Flipkart in 2018. Presently, it reportedly holds an 85% share in Flipkart, up from 75% in January 2023. The remaining 15% is owned by investors, including Tiger Global Management, DST Global, Google, Qatar Investment Authority, and Singapore government’s investment company GIC.