Flipkart mulls US listing through the SPAC route

THE BENGALURUBASED ONLINE RETAILER HAS BEEN WEIGHING A US INITIAL PUBLIC OFFERING AND IT’S NOW ALSO LOOKING AT OTHER OPTIONS

BENGALURU: Walmart Inc.’s Flipkart is exploring going public in the US through a merger with a blank-cheque company as it seeks to quicken its listing process, according to people familiar with the matter.

The Bengaluru-based online retailer has been weighing a US initial public offering and it’s now also looking at other options, the people said.

Flipkart’s advisers have approached several SPACS, said one of the people, who asked not to be identified as the information is not public. Flipkart could seek a valuation of at least $35 billion in a blank-cheque transaction, the people said.

Deliberations are at an early stage and Flipkart could still explore other options, the people said. The e-commerce firm is joining other firms like online grocer Grofers in exploring a US listing through SPAC deals. Renew Power last week agreed to merge with a Us-listed special purpose acquisition company in a deal that will give India’s biggest renewable power producer an enterprise value of $8 billion.

Merging with SPACS, which are shell companies that raise money from public investors intending to acquire a business within two years, will allow Walmart to take its India unit to the market at a faster pace than the usual IPO route.