Flipkart approves India domicile shift before IPO launch, marking a major strategic shift in its corporate structure. The Walmart-owned e-commerce giant has secured board approval to move its holding company from Singapore to India. This decision is not just a regulatory adjustment, but a powerful signal of Flipkart’s long-term commitment to India—the market where it was born and where it continues to thrive.
According to an ET report, Flipkart’s board took this decision in a meeting held in Singapore last week. This move aligns Flipkart’s legal home with its primary market, allowing it to navigate regulatory frameworks more effectively while enhancing its readiness for an IPO expected between late 2025 and early 2026. The move is being described as a “reverse flip”—a term that denotes bringing a company’s registered headquarters back to its origin country after relocating overseas for operational or investor convenience.
This development is expected to streamline investor access to Flipkart’s public offering. Flipkart’s valuation stood at $33 billion after its $600 million funding round in December 2023, and the upcoming IPO may target a valuation between $60 billion and $70 billion. By shifting its domicile, Flipkart also joins an expanding cohort of Indian startups including PhonePe, Groww, Zepto, and Dream11 that have made similar moves in recent years.
The board of Flipkart Internet (India) has also approved a capitalisation of Rs 26,552 crore for issuing bonus shares to its other entities as part of this corporate restructuring. The strategic homecoming is expected to sharpen Flipkart’s agility in serving Indian customers, deepen alignment with government policies, and strengthen its competitive edge in the rapidly growing digital economy.
This milestone sets the stage for a landmark IPO and underscores Flipkart’s pivotal role in India’s startup ecosystem, reflecting both growth potential and investor confidence in the domestic market.
1. Flipkart’s Business Model, Services, and Founding Background
1.1 Founding and Evolution
Flipkart was founded in 2007 by Sachin Bansal and Binny Bansal, both former Amazon employees. What started as an online bookstore has since evolved into one of India’s largest e-commerce platforms. Headquartered in Bengaluru, Flipkart has been instrumental in shaping the online retail space in India.
1.2 Revenue and Operating Model
Flipkart primarily earns revenue through product sales on its marketplace and commissions from sellers. It follows a hybrid business model—retailing private label products while also acting as a marketplace for third-party vendors. With strategic verticals like Myntra (fashion), Flipkart Wholesale (B2B), and Cleartrip (travel), Flipkart has diversified its service offerings.
1.3 Funding and Ownership
Flipkart’s funding history is notable. Walmart acquired a 77% stake for $16 billion in 2018, making it one of the largest global tech acquisitions. The company has since attracted further investments, including a $3.6 billion round in July 2021. As of December 2023, Flipkart’s valuation stood at $33 billion.
2. Flipkart Approves India Domicile Shift Before IPO Launch
2.1 Strategic Shift: The Reverse Flip
Flipkart approves India domicile shift before IPO launch as part of a long-awaited “reverse flip” strategy. This involves relocating its holding entity from Singapore back to India, aligning with national policies that promote ease of doing business and encourage domestic IPOs.
2.2 Regulatory and Operational Benefits
This move is expected to simplify regulatory compliance and make it easier for local and global investors to participate in Flipkart’s IPO. Being domiciled in India enables Flipkart to benefit from the country’s evolving capital markets and favourable startup policies.
3. IPO Trajectory and Financial Preparations
3.1 IPO Timeline and Valuation Goals
Flipkart is aiming for an IPO by late 2025 or early 2026. Analysts suggest a valuation of $60 billion to $70 billion, nearly double its current $33 billion valuation. This growth projection is based on Flipkart’s expanding user base, improving logistics, and deep integration into the Indian e-commerce market.
3.2 Bonus Issue and Corporate Restructuring
Flipkart Internet (India) recently passed a resolution to issue bonus shares worth Rs 26,552 crore. This is seen as a preparatory step towards restructuring ownership and streamlining financial statements before the public listing.
4. Industry Trends and Comparative Moves
4.1 Indian Startups Repatriating
Flipkart’s move follows similar decisions by other major startups like PhonePe, Zepto, Groww, Dream11, and Pine Labs. This trend reflects a broader strategy among Indian tech firms to strengthen their presence in the domestic market while leveraging India’s increasingly supportive regulatory ecosystem.
4.2 Government Support and Policy Boost
The Indian government’s Startup India initiative and other reforms have played a critical role in encouraging companies to relocate their base. Flipkart’s decision echoes these policy goals and signals its alignment with national interests.
5. Market and Stakeholder Impact
5.1 Investor Sentiment and Market Dynamics
By becoming a purely Indian entity, Flipkart is likely to attract greater interest from domestic mutual funds, retail investors, and sovereign wealth funds. This improves both investor confidence and IPO performance prospects.
5.2 Strategic Importance for Walmart
For Walmart, this move enhances the value of its Flipkart investment by increasing access to Indian capital markets and aligning with local regulations, thereby reducing operational and compliance risks.
6. Learning for Startups and Entrepreneurs
- Regulatory alignment can significantly impact IPO readiness.
- Staying connected to the core market often creates long-term strategic advantages.
- Repatriation can attract local investors and simplify business operations.
- Government policies like Startup India can positively influence business decisions.
- Bonus share issues and restructuring enhance corporate transparency before an IPO.
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