The company had received a nod from the National Company Law Tribunal (NCLT) to undertake the reverse flip in December last year
Flipkart had first shifted its domicile to Singapore in 2014 as a way to attract foreign capital, a move followed by several startups at the time
Last week it was reported that Flipkart fired 400-500 employees, or 3-4% of its workforce, after its annual performance review exercise
In the run up to its much anticipated IPO, ecommerce giant Flipkart has now completely redomiciled to India after receiving the nod from the Indian government. The company’s reverse flip was cleared by the National Company Law Tribunal (NCLT) earlier in December last year.
“Flipkart has received Government of India approval for its internal restructuring, pursuant to which Flipkart Internet Private Limited is now the holding entity of the Flipkart group. This completes the redomiciliation of the Flipkart group to India, a significant milestone that reflects our deep and long-term commitment to India,” the company said in a statement.
With this, Flipkart’s India entity will merge with Flipkart’s Singapore-based subsidiaries — Flipkart Health Pvt Ltd, QuickRoutes International Pvt Ltd, Flipkart Marketplace Pvt Ltd and FK Myntra Holdings Pvt Ltd. The development was first reported by ET.
Flipkart had first shifted its domicile to Singapore in 2014 as a way to attract foreign capital, a move followed by several startups at the time. However, most have had to redomicile to India in order to list on domestic bourses, including Meesho and Groww, which went public last year.
The Walmart-owned ecommerce major, which has raised $36 Bn till date, has been preparing for a mega-IPO since 2024. It has been in the process of reverse flipping to India over the past couple of years.
Additionally, it has commenced talks with several investment bankers, including Goldman Sachs, Kotak Mahindra Capital, Morgan Stanley and JP Morgan, to assess the feasibility of the public offering.
Ahead of the IPO, the company has also taken significant restructuring and cost-cutting measures. Last week it was reported that Flipkart fired 400-500 employeesor 3-4% of its workforce, after its annual performance review exercise.
At the same time, it is prepping its balance sheet by divesting stakes in companies like Flying Machine and Aditya Birla Lifestyle Brands, as well as laying off its holdings in listed startup Shadowfax via its IPO this year.
It has also been expanding verticals to tap the burgeoning delivery segment in India, through a late entry in quick commerce via Flipkart Minutes and a recent interest in food delivery as well.
Comments are closed.