IPO-bound Flipkart plans to shift holding company from Singapore to India

E-commerce giant Flipkart, based and operating in India, has shared its intention to relocate its holding company from Singapore to India.

 

The move comes at a time when Walmart-owned Flipkart, valued at around $36 billion, is preparing for an initial public offering (IPO) expected within the next 12 to 15 months, according to sources. The company has secured internal approvals to shift its domicile from Singapore to India — a key step to facilitate its listing on Indian stock exchanges. Backed by Walmart, Flipkart has been strengthening its board and operations in anticipation of the public offering, aiming for what could be one of the largest IPOs by a new-age Indian company.

 

Speaking on the development, a Flipkart spokesperson on Monday night said the strategic decision reflects the company’s deep and unwavering commitment to India and its remarkable growth.

 

“We are inspired by the Government of India’s strong vision and proactive initiatives in fostering a thriving business environment and ease of doing business, which have significantly shaped our journey,” said the Flipkart spokesperson. “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.”

 

As a company born and nurtured in India, the spokesperson said this transition will further enhance Flipkart’s focus and agility in serving its customers, sellers, partners, and communities to continue contributing to the nation’s growing digital economy and entrepreneurship. “We are excited by the opportunities ahead and reaffirm our long-term confidence in India’s future,” the spokesperson added.

 

Flipkart recently scrapped its work-from-home policy and asked all employees to return to office five days a week, seeking a “shared focus on common goals”.

 

It has around 22,000 employees. The company asked them to resume full-time office attendance, ending the remote work flexibility adopted at the onset of the Covid-19 pandemic in 2020.

 

Diwali-IPO window

 

Flipkart, which counts Amazon and Reliance’s JioMart among its competitors in India’s burgeoning e-commerce market, had also contemplated launching an IPO in 2022–2023. However, it had to postpone the plan due to financial considerations and global macroeconomic uncertainty.

 

The Indian e-commerce market is expected to reach $325 billion by 2030, growing at a robust compound annual growth rate (CAGR) of 21 per cent, according to a Federation of Indian Chambers of Commerce and Industry (Ficci)-Deloitte report.

 

More than 20 startups are expected to launch IPOs in India in 2025. Prominent names include online jewellery platform Bluestone, quick-commerce firm Zepto, electronics company Boat, and Ather. Several Indian startups domiciled abroad are shifting their base — or reverse-flipping — to India. Fintech company PhonePe recently said it had started preparations for a potential listing in the country. In December 2022, PhonePe shifted its domicile from Singapore to India. PhonePe’s investors, led by Walmart, had to pay about Rs 8,000 crore in taxes to allow the fintech firm to shift its domicile to India. PhonePe said its “strong top line and bottom line growth” across business portfolios made it a suitable time for public listing.

 

However, rising concerns over a potential US recession and renewed trade tensions, fuelled by US President Donald Trump’s tariff proposals, are prompting several Indian technology startups to reassess their IPO plans. A wave of market uncertainty has tempered investor appetite, leading many firms to consider delaying their listings, according to industry sources and analysts.

 

“US tariffs have a wide-reaching impact on geopolitical relations, trade flows, and businesses. Companies face tremendous uncertainty and rapid change on a global scale. Increased volatility spells bad weather in the short term for IPOs,” said Veenit Surana, partner, financial accounting advisory services (FAAS), EY India, recently. “As companies emerge from this uncertainty and assess the impact on their current and future financial projections, the IPO window will open again post-Diwali for well-equipped companies.”

 

This uncertainty comes at a time when more than 30 startups — together valued at around $100 billion — are eyeing public debuts by 2027, signalling long-term optimism for India’s equity markets, according to a report by the Rainmaker Group, an investment bank. Among those preparing to go public are Flipkart, fintech leader PhonePe, SoftBank-backed Lenskart, Razorpay, Zetwerk, Meesho, and electric vehicle maker Ather Energy.

 

New-age companies — typically driven by technology and focused on digital services — are expected to play a crucial role in India’s upcoming IPO boom. There are about 30 such listed companies with a combined market capitalisation of more than $110 billion, of which the top 15 account for $80 billion, according to Redseer Strategy Consultants.

 

The market capitalisation of these new-age companies is expected to reach $1 trillion by 2030, driven by IPO-ready businesses, a robust regulatory environment, and domestic investments, according to the consultancy.