Flipkart Considers Headquarters Move to India Ahead of IPO: Report

Consumer giant Flipkart is contemplating relocating its headquarters from Singapore back to India in anticipation of its upcoming initial public offering (IPO), according to sources familiar with the matter. The move, reported by The Economic Times, would involve shifting Flipkart Pvt Limited, the holding entity based in Singapore, to India.

The e-commerce company, presently valued at $33 billion, has been engaged in internal discussions regarding this potential shift, which is expected to gain traction over the next few months.

“Recent consumer company IPOs have shown the appetite for large consumer businesses on domestic bourses, and the consideration to move its holding company to India is part of that. Flipkart has been sharpening its strategies to get to profitability,” shared insiders familiar with the discussions.

While Flipkart is not planning an IPO in 2024, the relocation of its headquarters could align the company with the regulatory landscape in India and pave the way for future public listing plans. The transition is also expected to result in tax benefits for the Indian Government, similar to the recent move by PhonePe, a subsidiary of Flipkart.

“In 2022, when PhonePe separated from Flipkart and shifted domicile to Singapore, Walmart paid nearly $1 billion in local taxes,” highlighted the report.

Flipkart, majority-owned by US retail giant Walmart (85%), has a robust operational presence in India across various sectors including marketplace, logistics, and payments.

In response to queries, Flipkart declined to provide specific details. However, recent developments in the consumer tech sector indicate a trend of companies returning to their home countries ahead of significant corporate actions.

Last week, Groww Founder and CEO Lalit Keshre announced a similar shift for his company, stating, “The company has completed its domicile transition back to India. Groww Group and its subsidiaries are now completely based in India.”

The move by Flipkart, if executed, would mark a notable step towards strengthening its ties with India and preparing for its next phase of growth in the public market.