With a market of $35 billion, the e-commerce giant has accelerated the Initial Public Offering(IPO) process. As per the latest route, Walmart-owned Flipkart plans to start IPO through SPAC(Special Purpose AcquisitionCompany) route. Through the SPAC process, companies avoid the traditional IPO process. SPAC is a shell company that acquires a private company to make it public. Experts believe that Flipkart IPO may become one of the successful IPO in Indian Startup Unicorn.
Details About Flipkart IPO
As per the latest developments, Flipkart IPO will be launched in the US through a blank check company. First, Flipkart will get acquired by that company then the IPO process will start.
Flipkart is planning to launch its IPO in the US for the last few months. Financial advisors of Flipkart has already in touch with a few SPACs for a shortcut method of IPO. SPAC merging process will allow Flipkart to skip some steps for the IPO process. When contacted, Flipkart revealed that the SPAC decision is not final yet. We are looking for other options as well in parallel.
Pandemic emergency has made SPAC very popular for the IPO process. In 2020, more than 200 SPACs started their IPO raising a whopping amount of $64 billion.
Other Indian Companies IPO Status and Walmart Growth
SPAC IPO allows getting a capital flux in a limited time compared to a lengthy process in traditional IPO. Currently, around 10 Indian companies are on the way to start their IPO journey. Surprisingly, all of them are taking a route of SPAC.
Emerging online grocery startup Grofers is expected to have a US listing in the coming months. ReNew Power, Indian Renewable Energy Company, signed a contract with SPAC last week. It will also make the company valuation around $8 billion. Burger King India is another company that may start its IPO in the coming months.
Walmart US sales saw a surge of 69%. It is observing good run in all departments. In the FY2021, Walmart, American Retail Giant, posted total revenue of $559.2 billion that shows 6.7% Year over Year growth. Totally, revenue was increased by $35.2 billion compare to last fiscal year.