In a pivotal decision that signals its readiness for the public markets, Flipkart, the Walmart-backed e-commerce giant, has opted to relocate its holding company from Singapore back to India. This strategic move aligns with Flipkart’s ambitions for a public listing on India’s leading stock exchanges, commonly referred to as Dalal Street.
Flipkart, which originally started in 2007 by selling books online, has grown into one of India’s foremost e-commerce platforms, now in direct competition with global behemoth Amazon. The company had initially shifted its base to Singapore in 2011, seeking to attract international investors and capitalize on favorable tax conditions. However, with the impending IPO on the horizon, Flipkart’s return to India marks a significant change.
“This move represents a natural evolution, aligning our holding structure with our core operations,” Flipkart commented in a statement.
This shift follows a similar path taken by PhonePe, Flipkart’s former digital payments arm, which also moved its headquarters from Singapore to India in 2022. The separation of PhonePe from Flipkart, while costly for Walmart in terms of taxes, almost $1 billion paved the way for both companies to independently list on the Indian stock market.
With this latest development, Walmart is preparing to list both Flipkart and PhonePe on Indian stock exchanges in the coming years. Dan Bartlett, Executive Vice President for Corporate Affairs at Walmart, previously highlighted that steps are already underway for these IPOs.
Why the Trend of Returning to India?
Flipkart’s move is part of a growing trend among Indian startups that once chose to register their companies abroad but are now bringing their operations back to India. Startups initially set up their holding companies in regions like Singapore or the United States to access global capital and benefit from more lenient tax regulations.
However, India’s regulatory framework prohibits companies from being listed on dual exchanges, meaning a company registered abroad cannot go public in India. As a result, startups aiming to launch IPOs in India are making the strategic decision to return their bases to their home country, simplifying the process of going public on Dalal Street.
This movement is being mirrored by several other Indian startups. Notable names such as financial technology firms Razorpay and Pine Labs, quick delivery service Zepto, and digital advertising platform InMobi are either in the process of moving their bases to India or have already made the shift.
By returning to India, Flipkart, along with its peers, is positioning itself for future growth, aligning its operations with India’s evolving financial ecosystem. This shift is more than just a corporate move, it represents a renewed focus on India’s promising stock market and its rapidly growing digital economy.
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