Walmart eyes Flipkart IPO; sees strong growth in PhonePe

Walmart is currently evaluating the optimal timing for Flipkart's initial public offering (IPO), indicating its keen interest in India's dynamic market landscape. The retail giant, which acquired Flipkart in 2018 for $16 billion, highlighted Flipkart's robust growth alongside its subsidiary, PhonePe, as key factors driving this assessment.

Walmart's recent financial results for Q1FY25 surpassed expectations, with profits soaring to $5.10 billion compared to $1.67 billion the previous year. The company's revenue also climbed 6 percent to $161.51 billion, outperforming estimates and demonstrating solid performance.

Myntra, Flipkart's fashion e-commerce arm, notably contributed to this success by achieving profitability on an EBITDA basis for two consecutive quarters. Walmart emphasized Myntra's positive performance as a catalyst for enhancing Flipkart's overall business profile.

While Walmart has yet to finalize Flipkart's IPO plans, the company has been laying the groundwork for a potential listing on Indian exchanges, including relocating Flipkart's base from Singapore back to India. In addition to Flipkart and Myntra, Walmart's Indian portfolio encompasses PhonePe, a leading payments platform.

The ongoing growth and profitability of Flipkart's ecosystem, coupled with Myntra's positive trajectory, reflect Walmart's confidence in India's e-commerce landscape and its commitment to leveraging this market opportunity effectively.