Consumer internet company Flipkart reportedly plans to shift its domicile from Singapore to India. The firm, currently valued at $33 billion, is in discussions to shift Flipkart Pvt Limited, the holding company based in Singapore back to India, in preparation for its IPO (initial public offering).
According to a report by The Economic Times. senior leadership members have been discussing this shift internally and plans are likely to gather momentum in the coming months.
Flipkart did not respond to detailed questions sent by YourStory.
The relocation of the domicile will also likely bring tax gains for the Indian Government. In 2022, when PhonePe separated from Flipkart and shifted domicile to Singapore, Walmart paid nearly $1 billion in local taxes. US-listed Walmart owns 85% of the ecommerce startup, and 84% of PhonePe as of January 31, 2024.
Flipkart has a sprawling operation in India with multiple units housing the company’s marketplace, logistics, payments, and other ecommerce verticals.
People in the know reportedly told the publication that while Flipkart has no plans for an IPO in 2024, “recent consumer company IPOs have shown the appetite for large consumer businesses on domestic bourses, and the consideration to move its holding company to India is part of that. Flipkart has been sharpening its strategies to get to profitability.”
Last week, Groww Founder and CEO Lalit Keshre announced that the company has completed its domicile transition back to India. He reiterated that Groww Group and its subsidiaries are completely based in India.
The shift marks a changing trend for established startups to return home to be in synchrony with the regulatory framework and prepare for public listing plans.
Edited by Affirunisa Kankudti
