Flipkart IPO To Happen At 'Right Time', Says Walmart CEO
Walmart Inc. is exploring the right time to bring Flipkart to primary markets, Chief Executive Officer Kathryn McLay told analysts. Growth in some premiumisation and related factors are lifting the profile of the Flipkart business, which is on track to the projected growth trajectory, The Walmart chief said during the earnings call for its first quarter results.
"We are looking and exploring when will be the right time to IPO that business," McLay said during the call on May 16.
The business of Flipkart and PhonePe has grown, while Myntra has turned Ebitda-positive for the last two quarters, the Walmart chief executive said. "We're excited about the India market."
The US retail giant has earlier said that the IPO of the e-commerce giant remains its "long-term ambition" after it bought out Tiger Global's stake. Walmart Inc. paid $1.4 billion to buy Tiger Global Management's remaining stake in Flipkart. The IPO remains "our long-term ambition, and it will come at the right time", a spokesperson had told NDTV Profit earlier.
In a direct competition with its rival Amazon.com, Walmart entered Flipkart in 2018, paying about $16 billion for a 77% stake. The Indian e-commerce space has also seen intense competition from later entrants, such as Mukesh Ambani's JioMart and Sequoia-backed Meesho.
Walmart's market cap topped $500 billion for the first time on better-than-expected first-quarter earnings. Sales figures of the US-based retailer rose 3.8% for the quarter ended April. E-commerce was a big driver in the rise, jumping 22% during the same period.
Walmart expects adjusted earnings to come in at the high end or slightly above its original guidance of $2.23 to $2.37 per share and revenue growth of 3% to 4% for the full year.
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