The Indian capital market is preparing for one of its most anticipated IPOs as Walmart-backed Flipkart moves closer to filing its Draft Red Herring Prospectus (DRHP). The IPO, expected to be launched in late 2025 or early 2026, is set to mark the debut of one of India’s largest consumer-tech players on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
As of today, Flipkart has not yet filed its DRHP with the Securities and Exchange Board of India (SEBI), but the groundwork is clearly being laid. The company has redomiciled its operations from Singapore to India, secured a lending license from the Reserve Bank of India (RBI), and is actively streamlining its corporate structure for public listing.
Redomiciling to India: Flipkart’s Strategic Shift
Flipkart was earlier headquartered in Singapore, but in a strategic shift, the company has completed the process of shifting its domicile to India. This move is expected to not only comply with local regulations but also to help the company secure a higher valuation by aligning closer with its consumer base.
This “reverse flip” has been in the works since early 2024 and is now nearly complete. Flipkart’s Indian listing will benefit from being more accessible to domestic investors and provide easier entry into Indian benchmark indices post-listing.
DRHP Filing Timeline and Expected Listing Date
While the official dates remain unannounced, internal planning suggests that the DRHP will likely be filed in the second half of 2025. Post-approval from SEBI, Flipkart could target a listing between December 2025 and Q1 2026.
Final IPO details such as the issue size, price band, and lot size are expected to be revealed in the DRHP. However, early estimates suggest Flipkart could be eyeing a valuation of around $60–70 billion, making it one of India’s largest IPOs.
Lending License: A New Business Avenue
In a significant development, Flipkart has secured approval from the RBI to operate as a Non-Banking Financial Company (NBFC). This license allows the company to directly provide credit facilities to both buyers and sellers on its platform.
Until now, Flipkart was dependent on financial partnerships for such services. With its NBFC status, Flipkart is poised to boost profitability by improving margins on consumer loans and working capital support to sellers.
This new vertical is expected to be a major focus area for the company post-IPO, further strengthening its financial services offering.
Financial Performance and Business Growth
In FY24, Flipkart recorded a 20% year-on-year growth in revenue, while narrowing its net losses by 41%. This progress shows improving operational efficiencies and scalability.
The company has managed to reduce its cash burn significantly, which will be a crucial indicator for potential IPO investors. While it is not yet profitable, the narrowing losses signal a viable path to long-term sustainability.
Flipkart’s Ecosystem: Strength in Subsidiaries
Flipkart operates a diverse range of platforms that make up its broader ecosystem:
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Myntra (fashion and lifestyle)
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Shopsy (value e-commerce)
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Cleartrip (travel and bookings)
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Flipkart Health+ (digital pharmacy)
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Ekart (pan-India logistics and supply chain)
These subsidiaries help Flipkart reach different consumer segments, contributing to user acquisition, higher gross merchandise value (GMV), and customer retention.
Competitive Landscape
Flipkart operates in a competitive Indian e-commerce environment, with major rivals like Amazon India, Reliance’s JioMart, Tata Neu, Meesho, and Snapdeal.
A significant upcoming disruptor is the Open Network for Digital Commerce (ONDC)—an open-source network backed by the Indian government that could challenge platform-based models like Flipkart.
However, Flipkart’s established user base, robust logistics (Ekart), and deep Walmart backing provide substantial competitive advantages.
Flipkart IPO Objectives
The primary objective of Flipkart’s IPO is to raise capital to fund:
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Expansion into new categories and markets
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Strengthening its NBFC lending business
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Investing in AI, machine learning, and logistics technology
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Enhancing customer experience and last-mile delivery infrastructure
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Repaying existing debts and improving its balance sheet
Walmart, which currently holds around 81% stake in Flipkart, is also expected to offload a portion of its holdings in the IPO to unlock value.
Why Investors Are Watching This IPO
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Sector Leadership: Flipkart remains one of India’s top e-commerce players with a proven track record and market leadership across several categories.
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High Valuation Potential: With a projected valuation between $60–70 billion, Flipkart’s IPO could rival tech giants globally.
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Market Momentum: India’s e-commerce market is projected to reach $300 billion by 2030, offering huge upside for Flipkart.
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Operational Diversification: Flipkart’s ecosystem, from logistics to financial services, allows it to extract more value per customer.
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Strong Promoter: Walmart’s backing ensures sound governance and long-term capital strength.
Risks Involved
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Continued Cash Burn: Despite narrowing losses, Flipkart has yet to achieve net profitability.
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Competitive Pressure: Aggressive moves by Amazon, JioMart, and Meesho could impact growth and margins.
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Regulatory Landscape: Data privacy laws, e-commerce policy shifts, and ONDC could pose compliance and revenue challenges.
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Valuation Stretch: A high valuation may limit upside on listing unless supported by consistent performance.
Future Outlook
Post-listing, Flipkart’s success will depend on:
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Timely execution of NBFC lending rollout
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Profitability trajectory and margin expansion
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Scaling Shopsy and Flipkart Health+
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Sustained leadership in core verticals like electronics, fashion, and grocery
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Customer retention amid competitive pricing wars
If Flipkart can capitalize on its vast ecosystem, continue reducing losses, and convert its NBFC license into a profitable lending arm, it may emerge as a leading listed tech stock in India.
What Happens Next?
Flipkart’s IPO journey will unfold over the coming months as it:
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Completes final compliance steps post-redomicile
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Files the DRHP with SEBI
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Secures approval for listing on BSE and NSE
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Finalizes issue details for public subscription
Once these steps are completed, Flipkart will likely open for bidding via book-building in late 2025.
Final Thoughts
The Flipkart IPO is shaping up to be a landmark event for Indian capital markets. With a vast customer base, strong brand recognition, operational maturity, and Walmart’s support, Flipkart holds the potential to reward long-term investors significantly.
However, cautious optimism is advised. The IPO’s success will hinge on issue pricing, broader market conditions, and Flipkart’s ability to deliver profitability.
Investors should monitor DRHP filing announcements closely and assess detailed financials before making a final investment decision.
