Walmart-Owned Flipkart IPO Delayed Amid Shift to Profitability, Reports Suggest

Walmart Directs Flipkart to Postpone IPO Plans

Walmart, a leading US retail giant, has asked its Indian e-commerce platform Flipkart to pause its initial public offering (IPO) plans and concentrate on achieving earnings before interest, taxes, depreciation, and amortization (EBITDA) breakeven before the end of fiscal year (FY) 27, according to a report from Moneycontrol.

This decision was made during a recent visit by Walmart CEO and President John Furner to Bengaluru, marking his first trip to India since taking the role in February. Furner reportedly met with senior Flipkart executives to assess the company's long-term growth and profitability strategy.

Flipkart has set an internal objective to reach EBITDA breakeven within the current financial year, effectively delaying its planned IPO and any upcoming pre-IPO fundraising efforts until it achieves profitability targets. This marks the second significant delay in Walmart's listings in India, following the postponement of PhonePe, in which the US company also holds a controlling interest.

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Walmart currently possesses over 80% ownership in Flipkart and approximately 71.8% in PhonePe. The report from Moneycontrol also noted that Walmart is not under any immediate pressure to generate returns from its investments in India through public offerings and is instead focusing on achieving sustainable financial results over expedited market entry plans.