At the DB Access Global Consumer Conference held on June 7, Judith McKenna, President and CEO, Walmart said, though the retailer plans to launch an IPO for its Indian e-commerce arm Flipkart, the timeframe has not been decided. Walmart acquired a 77 per cent stake in Flipkart in 2018 by investing $16 billion in the firm. In July last year, the retailer invested additional $2-billion in the e-commerce firm raising its value to $24.9 billion.
Flipkart is also set receive investments worth $600 million from the Softbank Group. The transaction, which may also see participation from Singapore's sovereign wealth fund GIC and Canadian pension fund CPPIB -- could raise Flipkart’s value to $32 billion.
India witnessed strong e-commerce sales since the outbreak of pandemic. The convenience of online shopping has prompted many shoppers to switch to e-commerce platforms who are also ramping up capacities to meet growing demands.
COVID-19 has also increased digital penetration across India, says McKenna highlighting the growth in users payment app, PhonePe. McKenna informs, the payment platform has just crossed the 300 million users mark in a five-year period. It is also venturing into new financial services such as gold insurance, mutual funds, etc.
