Flipkart’s $30B Journey: From Walmart’s Umbrella to India’s Biggest IPO!
Quick Summary
- Flipkart’s return to India from Walmart’s ownership sets the stage for a $38–$40 billion IPO, poised to redefine India’s e-commerce sector.
- With revenue surging 21% in FY24, Myntra turning profitable, and innovations in fintech and quick commerce, Flipkart is not just back—it’s leading India’s digital commerce evolution.
After a stint under Walmart’s ownership, Flipkart is making a remarkable return to its roots in India. Initially acquired by Walmart with a $16 billion deal for 77% ownership in August 2018, the e-commerce giant has seen Walmart further invest $3.5 billion in September 2023 to boost their stake to 80.5%, followed by an additional $600 million in May 2024.
Strategic Moves and Expansions
- Acquisition and Spin-off: Flipkart bought PhonePe in 2016 for $20 million, only for it to be spun out in 2022, leading to a historic cash payout of approximately $700 million to over 25,000 employees, marking the largest in India’s startup history.
- Acquisitions and Collaborations:
- Attempted Zepto Buyout: Flipkart aimed high with a $2 billion offer to acquire Zepto but didn’t succeed.
- Swiggy Partnership Talks: Plans to partner with Swiggy for the Quick Commerce (QC) market fizzled due to valuation disagreements.
- Innovations and Launches:
- Super.money: Flipkart introduced ‘super.money’, a UPI super app, to broaden its fintech offerings.
- 10-Minute Medicine Delivery: Ventured into the QC market with a beta test for medicine delivery in just 10 minutes.
Financial Highlights of FY24
- Revenue Surge: Flipkart reported a significant revenue of ₹17,907.3 crore, marking a 21% increase year-on-year.
- Loss Reduction: Managed to cut losses by 41% to ₹2,358 crore, focusing only on marketplace revenue.
- Myntra’s Milestone: Its fashion arm, Myntra, turned profitable with a Profit After Tax of ₹30.9 crore and a revenue of ₹5,121.8 crore, a 15% year-on-year growth.
IPO on the Horizon
- Valuation and Market Impact: With a valuation hovering between $38-$40 billion, Flipkart is eyeing an IPO which, at this multiple of 20X its revenue (or 5X when considering total revenue from operations), could potentially dwarf Hyundai Motors in market impact.
What This Means for India
Flipkart’s moves are not just about business growth; they’re a testament to India’s burgeoning tech and e-commerce landscape. The company’s strategic expansions, financial turnaround, and IPO plans signify a new era of digital commerce in India, potentially reshaping the market dynamics and offering substantial opportunities for investors and consumers alike.
Flipkart’s return to India isn’t just a corporate shift; it’s a signal of confidence in the Indian market’s potential. From pioneering quick commerce to leveraging fintech, Flipkart is set to redefine retail in India. As we wait for the IPO, one thing is clear: Flipkart is not just back; it’s here to lead. Keep an eye on this space as Flipkart continues to innovate and grow, promising an exciting future for e-commerce in India.
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Rajat N
Web Designer and Digital Marketing Manager with 3+ years of experience at Vibrant Marketer. Skilled in crafting visually appealing and user-friendly websites. Also proficient in content writing and graphic design to enhance brand visibility.