Flipkart is considering SPAC route to go public in the US
Walmarts Flipkart has been Expansion of the range in India even if it keeps an eye on its options go public in the US Flipkart is an eCommerce marketplace site that competes for the attention of Indian consumers with companies like Amazon and Reliance Industries.
Now, Bloomberg reports, Flipkart is examining the prospects for an IPO through a special purpose vehicle (SPAC), also known as a blank check company. Such a company does not have a commercial operation, but has raised money from investors through an initial public offering (IPO) of shares.
Sources told Bloomberg that Flipkart consultants contacted multiple SPACs. Flipkart could aim for a valuation of at least $ 35 billion on such a move, sources said, asking for anonymity as the information is not public.
Talks are at an early stage, however, and Flipkart is also exploring other options, Bloomberg reported. The e-commerce company joins other Indian companies considering using a SPAC.
The appeal to Walmart to use the SPAC route to go public would be that it could be done faster than the traditional IPO route.
An example is Grofers supported by SoftBank, an online grocery store. A source told Bloomberg that Grofers is aiming for a deal that would value the company at around $ 1 billion.
Neither Grofers nor Flipkart have spoken out on behalf of Bloomberg.
In a press release On Tuesday (March 2nd), Flipkart from Bengaluru said its services are now available in 50 cities across India. The company plans to expand to more than 70 cities over the next six months.
The release calls grocery store the “next big frontier for online shopping” and a “key focus” for the Walmart-assisted company in attracting new customers.
“Groceries are still one of the fastest growing categories as consumer demand for quality groceries and housewares increases,” said Manish Kumar, senior vice president of groceries, general merchandise and furniture for Flipkart.
According to the press release, over 7,000 products are available at Flipkart Grocery.