Flipkart is a leading Indian e-commerce company. According to multiple news reports, the company is planning an initial public offering (IPO). There is a lot of buzz surrounding the IPO right now. So we thought we’d share what we know about the Flipkart IPO so far and whether you can buy shares in the company.
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What is Flipkart?
Flipkart started operating in 2007 as an online bookseller, just like fellow e-commerce giant Amazon.
The company has since diversified and currently sells over 150 million products across 80 categories. These include clothing, electronics, appliances, groceries, mobile phones and home goods among others.
Flipkart currently boasts 350 million registered users and more than 300,000 vendors. In 2018, US retail giant Walmart bought a 77% stake in Flipkart for $16 billion.
When is Flipkart’s IPO?
There is no official date as of now, but it could happen before the end of the year, most likely in the fourth quarter.
Previous rumours suggested that Flipkart would go public via a special purpose acquisition company (SPAC) deal. However, current reports indicate that it will instead go public through the traditional IPO route.
Flipkart is expected to list in the United States. However, like many other details about the IPO, that has not been confirmed.
There is also as yet no information on how much Flipkart shares will cost once the company goes public. But according to some sources, Flipkart is aiming for a $50 billion (£42.3 billion) valuation.
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Can I buy shares in Flipkart?
Once Flipkart goes public, you will be able to buy its shares using a share dealing account.
If you don’t have one, we have reviewed and ranked some of the top providers of share dealing accounts in the UK to help you make a good choice.
As the listing is likely to be in the US, shares will be priced in US dollars. So be mindful of possible currency fluctuations when you are making your purchase.
Are Flipkart shares a good buy?
There are a lot of things to like about Flipkart from an investment perspective.
Just recently, the company reported that it had closed a $3.6 billion (£2.6 billion) funding round led by investors that included its main shareholder, Walmart, and others such as Japan’s SoftBank Vision Fund 2 and the Canada Pension Plan Investment Board. The new funds brought the online retailer’s current valuation to $37.6 billion (£27.1 billion).
According to Flipkart’s CEO, Kalyan Krishnamurthy, “This investment by leading global investors reflects the promise of digital commerce in India and their belief in Flipkart’s capabilities to maximise this potential for all stakeholders.”
India is not only a massively populous country with a large customer base, but it is also one of the world’s top emerging markets. Trends such as rapid smartphone adoption and low-cost mobile data are likely to foster fast growth for digital companies like Flipkart.
That being said, no investment is ever 100% safe, and there is never a guarantee of positive returns. So, before you invest, it’s wise to do your own research and seek professional advice if you need it.
