Why is Flipkart IPO Delayed? Walmart’s key advice to E-Commerce Giant In Focus - Check Details

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The much-awaited Flipkart IPO may not be happening anytime soon. Walmart has asked its e-commerce arm Flipkart to postpone its plans for a public listing and focus on profitability before coming to Dalal Street, as reported by Moneycontrol. The move comes at a time when the IPO market in India is already gearing up for several big offerings, including potential listings from Reliance Jio, NSE, Zepto and Oyo.

Why is Flipkart Delaying Its IPO?

It seems the biggest reason is the market conditions and profitability pressure.

The mega IPOs in the primary market pipeline in India are many and large, and investors may find it difficult to absorb several large issues at the same time. Technology and internet companies have been under pressure in valuations as well for the last few quarters, particularly as global investors are more focused on earnings visibility rather than aggressive growth.

The report also said Walmart wants Flipkart to reach EBITDA breakeven before it can move ahead with an IPO. Simply put, EBITDA, or earnings before interest, tax, depreciation and amortisation, is one of the key measures companies use to gauge how robust their core business operations really are.

Walmart CEO and President John Furner’s visit to Bengaluru recently reportedly saw discussions around the decision.

Flipkart has an internal target of achieving EBITDA breakeven by the end of FY27, sources said. Until then the company is not expected to actively consider either a public listing or a pre-IPO funding round.

Walmart’s message seems clear: profitability over speed. The company seems to be looking to strengthen its financial position first and enter the market at a more stable level instead of rushing Flipkart to Dalal Street.

Are Too Many IPOs Clogging the Market?

The timing of the delay is important.

India’s IPO market is already buzzing with activity, with a slew of big issues expected in the next two years. If multiple mega IPOs come on Dalal Street together, the investor liquidity can get stretched, feel market participants.

Reliance Jio’s much-awaited public issue, NSE’s long-awaited IPO, Zepto’s potential listing plans and Oyo’s market ambitions are likely to vie for investors’ attention.

In this case, companies may prefer to wait for sentiment to improve and valuations to rise before risking a bad performance at the listing.

Flipkart IPO: When Is It Happening?

Flipkart hasn’t confirmed any development yet. Nevertheless, it is being said that the Walmart-owned e-commerce giant can target an IPO in the year 2028, considering the volatility and busy pipeline of the market.

Flipkart IPO Could Be Huge Anyway

The delay notwithstanding, Flipkart’s IPO is likely to be one of the biggest technology listings in India when it finally hits the market.

Reports suggest that the size of the possible IPO will be around $8-10 billion.

The move also comes a day after Walmart-backed PhonePe postponed plans for an IPO this year, indicating caution among big new-age internet companies.

Also Read: Planning To Invest In Jio IPO? 5 Big Questions For New Investors Answered

(Disclaimer: This article is for informational purposes only and should not be considered investment advice. The views, opinions, and recommendations expressed herein are those of the respective experts. Readers are advised to consult a qualified financial advisor before making any investment decisions.)