Flipkart Secures NCLT Approval to Move Domicile Back to India, Paving Way for IPO
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Flipkart gains NCLT approval to move its domicile back to India from Singapore, a crucial step before its planned 2026 IPO filing. Tencent stake required govt nod.
E-commerce giant Flipkart has received the go-ahead from the National Company Law Tribunal (NCLT) to relocate its base from Singapore to India. This move brings the Walmart-owned company closer to its anticipated initial public offering (IPO) on Indian stock exchanges.
The Bengaluru-based online retailer intends to file its IPO papers in 2026. Because Chinese investment firm Tencent holds a stake of 5-6% in Flipkart, the company also sought and received approval from the central government under Press Note 3 regulations to bring its Singapore-based parent company under the Indian entity.
According to sources, Flipkart obtained clearance from a Singapore court a few weeks prior. Press Note 3, implemented in 2020, mandates government clearance for foreign investments into Indian companies from countries sharing a land border with India. Walmart acquired a 77% stake in Flipkart in May 2018 for $16 billion. Other shareholders include Microsoft, the Canada Pension Plan Investment Board, and SoftBank.
Upon completion of the domicile reversal, Flipkart Internet Pvt Ltd, based in Bengaluru, will become the primary entity, encompassing all operations and subsidiaries, including Myntra, Ekart, and others.
In April, Flipkart's board of directors approved the re-domiciling process. In May 2024, it was reported that Flipkart had concluded a $1 billion funding round, featuring a $350 million investment from Google's Alphabet, valuing the company at approximately $35-36 billion.
In preparation for its IPO, Flipkart appointed former Meta executive Dan Neary to its board. Flipkart's IPO will be the second public offering from Walmart's India portfolio, following PhonePe, which confidentially filed draft papers with SEBI in September for a $1.5 billion issue.
While experiencing a slowdown in online retail, Flipkart group entities have reduced their losses by cutting expenses. Financial statements reveal that losses narrowed for Flipkart Internet, Ekart, and Cleartrip. Myntra's profit increased significantly in FY25.
Flipkart Internet reported a 14% revenue increase to Rs 20,493 crore in 2024-25, with net losses decreasing by 37% to Rs 1,494 crore.
Flipkart's IPO is expected to follow the public listing of competitor Meesho, which occurred on December 10.
