Walmart-owned ecommerce marketplace Flipkart has completed the process of shifting the domicile of its holding company from Singapore back to India, marking a key step as the company moves towards a potential listing on Indian stock exchanges.
The move follows the final approval from the Union government under Press Note 3 rules, people aware of the matter said. The company had earlier received a nod from the National Company Law Tribunal (NCLT) in December for the restructuring but was awaiting central government clearance because Chinese technology company Tencent holds about a 5–6% stake in Flipkart.
Under Press Note 3 norms introduced in 2020, investments from countries that share a land border with India require government approval.
With the clearance now in place, Flipkart has secured all regulatory approvals needed to complete its redomiciliation. The development also clears the way for the company to move ahead with plans for a domestic initial public offering (IPO).
News reports said Flipkart has already begun early discussions with merchant bankers and aims to file its draft prospectus later this year.
Founded in Bengaluru by Sachin and Binny Bansal, Flipkart moved its holding structure to Singapore in 2011, a step many Indian startups took at the time to access global capital under simpler regulatory regimes.
As part of the restructuring, several Singapore-based entities, including the parent company, have been merged into Flipkart Internet Private Limited. These include holding companies for logistics arm Ekart, fashion platform Myntra, fintech platform Super.money, travel platform Cleartrip and healthcare platform Flipkart Health.
Following the restructuring, investors will hold their stakes directly in Flipkart Internet. Flipkart’s investors include Walmart, Microsoft, Canada Pension Plan Investment Board and SoftBank. Walmart acquired a 77% stake in the company in 2018 in a $16 billion deal.
In recent years, several startups, including Razorpay, Groww, Meesho and Dream11, have also shifted their domiciles back to India ahead of potential listings.