In a major turnaround, Flipkart is shifting its headquarters back to India after functioning out of Singapore for a number of years.
The company asserted that this step represents a "natural evolution" in its story, bringing its corporate setup into sync with its fundamental operations, the vast potential of the Indian economy, and its strengths in technology and innovation to power India's digitalization.
A Flipkart spokesperson said, "Born and raised in India, this change will make us more focused and agile to serve our customers, sellers, partners, and communities better. We continue to believe in contributing to the country's digital economy and enabling entrepreneurship. We're looking forward to the future and reaffirm our long-term faith in India's growth."
Adding further to the commitment of Flipkart to India, the spokesperson also said, "This strategic move is a testament to our strong and abiding commitment to India's remarkable growth. We are motivated by the vision and efforts of the Government of India to build a thriving business ecosystem and enhance the ease of doing business, both of which have been fundamental to our journey."
Although the move is still pending regulatory approval, it follows a trend seen among Indian startups. Companies like Zepto, Groww, and PhonePe have recently relocated their headquarters back to India, seeking better valuations and preparing for stock market listings in the country. In addition, firms like Razorpay, Pine Labs, and InMobi are either in the process of moving or have already shifted their operations back to India.
The news of Flipkart's shift follows Walmart executive vice president Dan Bartlett revealing to Reuters that Flipkart and PhonePe are likely to list in India over the next few years. PhonePe has already started making arrangements for its market listing on Indian exchanges.
Flipkart was established in Bengaluru in 2007 by Sachin and Binny Bansal and initially started as an online bookstore. With time, it diversified its product range to electronics, fashion, and groceries. In 2011, Flipkart relocated its head office to Singapore to lure foreign investment, get tax advantages, and deal with India's regulatory maze.
The relocation was pivotal in driving the company's growth and attractiveness to international investors. In 2018, Walmart purchased a 77% stake in Flipkart for $16 billion, one of the biggest e-commerce deals in the world and solidifying Walmart's foothold in India's rapidly expanding digital marketplace.
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