Flipkart Plans Domicile Shift from Singapore to India Ahead of Potential IPO

E-commerce giant Flipkart is reportedly in the process of shifting its domicile or holding company from Singapore to India, a move that could have significant implications as the company gears up for a potential initial public offering (IPO). This decision follows a trend observed among several late-stage companies aiming to relocate back to India in the coming months.

The domicile shift is seen as a strategic step aligned with Flipkart’s IPO plans, according to reports from the Economic Times (ET). By transitioning its domicile to India, Flipkart aims to streamline its operations and potentially enhance its market position ahead of its much-anticipated public listing.

Flipkart, which is controlled by retail giant Walmart, will be the second entity within the group to undergo a domicile shift. Previously, the digital payments platform PhonePe became the first to execute a reverse flip, separating from the Flipkart Group in December 2022.

The move entails significant tax implications, with PhonePe’s investors reportedly paying Rs 8,000 crore in taxes to the Indian government during the transition. Flipkart is also expected to incur substantial tax liabilities as part of the process, contingent upon its valuation and third-party audits.

As per recent valuations, Flipkart holds the distinction of being the most valued Indian-origin private company, with a valuation of $33 billion following a $600 million funding round in December last year.

However, the company’s valuation has fluctuated over time, notably standing at $37.6 billion in July 2021 after receiving a $3.6 billion investment led by SoftBank.

Walmart holds a significant 85% stake in Flipkart, followed by Tencent and CPP Investment, with 7.1% and 2.3% stakes, respectively. The departure of co-founder Binny Bansal from the company in January of this year marked a notable transition in Flipkart’s leadership.

The trend of companies relocating their domiciles back to India has gained momentum in recent times, with fintech unicorn Groww among the latest to complete the transition in March this year. Other prominent names working on similar reverse flips include KreditBee, Pine Labs, Razorpay, Meesho, Eruditus, and Zepto.

New-Age Media Platform, Entrackr has reached out to Flipkart for further comments on this development.

As Flipkart embarks on this pivotal transition, stakeholders eagerly await further updates on the potential IPO and its implications for India’s rapidly evolving e-commerce landscape.

Disclaimer: This information is covered based on the latest research and development available. However, it may not fully reflect all current aspects of the subject matter.

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