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Flipkart raises IPO valuation target to $60-70 billion, eyes 2023 listing

Flipkart, Walmart’s Indian e-commerce subsidiary, has raised its internal IPO valuation target by roughly a third to $60-70 billion, and now plans to list in the United States in 2023 rather than this year, according to two sources with direct knowledge of the plan.

According to Reuters, Flipkart, which competes with Amazon.com Inc in India’s booming e-commerce space, had previously set an IPO valuation goal of $50 billion.

According to two sources with direct knowledge, the main reason for the IPO delay is Flipkart’s internal plan to boost valuations even further by focusing on two of its relatively new businesses: online healthcare services and travel bookings.

According to two separate sources familiar with Flipkart’s plans, the ongoing global market turmoil caused by the Russia-Ukraine crisis has also forced the Indian company to rethink its timeline.

Flipkart bought Indian travel website Cleartrip in 2021 and this week launched a “Health” app to sell medicines and other healthcare products and services.

“Flipkart believes there is an even greater upside in valuation than was previously anticipated… The travel industry has already begun to show promising signs for them “according to the first source

According to the first source, the IPO valuation target could be as high as $70 billion, while the second said it could be between $60 and $65 billion.

According to sources, the listing is now scheduled for early to mid-2023. Flipkart is based in Singapore and plans to list in the United States, according to the company.

The IPO plans come amid growing complaints from Indian brick-and-mortar retailers that Flipkart and Amazon circumvent federal regulations and favour select sellers, claims the companies deny. India is also working on a slew of e-commerce regulations that could frighten foreign behemoths.

Walmart paid about $16 billion for a roughly 77% stake in Flipkart in 2018, its largest deal ever, and said later that year that it could take the company public in four years.

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