Flipkart Sells ₹2,400 Cr Worth Stake in Listed Firms to Refocus on Core Business Ahead of IPO

Flipkart has divested stakes totalling more than ₹2,408.7 crore in a string of start-ups and listed firms over the past 12 months, ET reported. This comes as the Walmart-backed marketplace prepares to concentrate on its core operations ahead of a planned public listing in 2026.

The Bengaluru-based company disposed of shares in several firms, including Aditya Birla Lifestyle Brands, Aditya Birla Fashion & Retail (ABFRL) and trucking platform Blackbuck through block deals and offer-for-sale routes, according to public block-deals data.

The most recent transaction was the sale of its entire roughly 6% stake in Aditya Birla Lifestyle Brands for about ₹998 crore on 6 October.

Strategic Pivot

Company moves come as Flipkart increases investment in its own fashion verticals to capture younger shoppers through video commerce, live streaming and influencer marketing.

As per the report, the sell-offs are designed to remove distractions from non-core holdings so the business can be judged on marketplace performance ahead of its IPO.

“Flipkart is selling its minor stake in non-core businesses ahead of its IPO since it will be judged on the basis of the performance of its core business,” ET quoted Satish Meena, founder of Datum Intelligence as saying.

Key Divestments & Returns

In June, Flipkart sold a 6% holding in ABFRL for ₹587.7 crore; the company had originally invested about ₹1,500 crore in ABFRL in 2020 and realised cumulative proceeds of ₹1,585.7 crore through related block deals.

Earlier, Flipkart trimmed holdings in Blackbuck, selling a 4.47% stake via the December 2024 public offering (realising about ₹151 crore) and later offloading the balance 8.73% for roughly ₹672 crore in June, marking multi-fold returns on its early investment.

The group also retains minority positions in logistics firm Shadowfax Technologies and had earlier taken a stake in Arvind Youth Brands.

IPO Approach

The divestments coincide with a wider push to improve unit economics: Flipkart’s group entities narrowed losses in 2024–25 by trimming expenses even as revenue growth softened amid a broader slowdown in online retail.

Core marketplace Flipkart Internet, logistics arm Ekart and travel portal Cleartrip reported reductions in losses of between 12% and 36% year-on-year, while Myntra, the group’s fashion and beauty arm, posted a near-18-fold jump in profit for 2024–25.

Market Implications

The transactions signal an attempt to present a leaner balance sheet and clearer growth story to investors ahead of the IPO.

By exiting minority stakes in non-operational assets, Flipkart is betting it can better showcase the profitability and scale of its marketplace, logistics and fashion businesses, areas likely to be under close scrutiny during public listing roadshows.