Flipkart prepaering to brings iPo, will shift holding company to India from Singapore

Flipkart, one of the big e-commerce companies, will shift its holding company to India from Singapore. Flipkart’s parent company Walmart plans to bring its Initial Public Offer (IPO). Many Indian startups kept their base abroad due to more capital and low tax. However, some of these startups are returning from Singapore and America due to better IPO possibilities in India. Dual listing is not allowed in India.

Flipkart stated in a statement, “This step is a common process. Our holding structure is being associated with our main business.” Flipkart started from selling online books about 17 years ago. The company expanded many product categories after this. In India Amazon This is the rivalry. Flipkart shifted its holding company to Singapore in 2011. About seven years ago, American retail company Walmart bought a large stake in Flipkart. Walmart also got the ownership of Digital Payments Company PhonePe with it. The controlling stake was then with Flipkart in the PhonePe.

About three years ago, PhonePe broke away from Flipkart and shifted its headquarters from Singapore to India. This had to pay Walmart to pay a tax of about one billion dollars. Walmart plans to list both Flipkart and PhonePe in the next few years. Last year, Walmart’s Executive Vice President, Dan Bartlett reported that PhonePe started preparing for listing on stock exchange in India.

The market of e-commerce in the country is estimated to increase by 2028 to more than $ 160 billion. Violations of laws related to foreign investment have also increased the scope of Enforcement Directorate (ED) investigation against Amazon and Flipkart. These companies say that they follow the laws of the country. However, the ED has been investigating the allegations against these companies for the last few years. These companies were accused of controlling the inventory of Goods through selected sellers. Under the country’s law, foreign e-commerce companies cannot keep inventory of products sold through their website and can only operate as a marketplace of sellers.