BENGALURU: Flipkart is on its path to profitability and “IPO is very much on the cards”, said Walmart Chief Financial Officer (CFO) and Executive Vice President Brett Biggs. However, he did not specify any timeline for it.
“The (Flipkart) business is performing almost exactly like we thought it would. Growth is good. We are going to continue to invest and take opportunities to grow that business, not just in retail but other areas (too),” said Biggs at the Morgan Stanley Global Consumer & Retail conference, which was held recently.
He said the business is certainly on its path to profitability.
“We expect that or we wouldn’t have gotten into the business,” he said.
“An IPO is very much on the cards. With everything else, it is the timing. Is the business exactly where you want? Is the market right? All those things have to figure into what you do with an IPO. IPO and letting our associates have a piece of the business, having it be a more local business in India, all those things are important to us, longer term. Nothing about that has changed,” Biggs said.
Founded in 2007, Flipkart was acquired by US retail giant Walmart in 2018. For a few quarters now, the company has been weighing an IPO in the US.
In July this year, the Flipkart Group raised $3.6 billion in funding and the investment values the group at $37.6 billion.
Flipkart had said that it will continue to invest in new categories and leverage made-in-India technology to transform consumer experiences and develop a world-class supply chain.
Recently, the company acquired SastaSundar and entered the crowded health-tech space with the launch of Flipkart Health+.
More than 300,000 registered sellers from across the country are on Flipkart’s marketplace, and 60% are from Tier 2 cities and beyond. The Group is also a majority shareholder in PhonePe.Flipkart’s rival SoftBank and Alibaba- backed Snapdeal, as per various reports, is eyeing for a $250 million IPO in 2022.
According to India Brand Equity Foundation (IBEF), e-commerce in India will reach $99 billion by 2024, growing at a 27% CAGR over 2019-24.
It adds that grocery and fashion/apparel will be the key drivers of incremental growth.
With Zomato, Nykaa and Paytm, among other big companies going public this year, 2022 could be a big year for e-commerce giants in India.
Aims to make world class supply chain
Founded in 2007, Flipkart was acquired by US retail giant Walmart in 2018.
In July this year, Flipkart raised $3.6 bn in funding and reached $37.6 bn valuation.
The company has acquired SastaSundar and entered the crowded health-tech space with the launch of Flipkart Health+