Flipkart Board Approves Domicile Shift from Singapore to India as E-commerce Giant Gears Up for IPO
This change is a logical progression that brings Flipkart's holding structure into line with its core business, the enormous potential of the Indian economy, and its capacity to promote digital transformation in India through innovation and technology.
Flipkart, a prominent e-commerce company, is joining the lengthy list of companies that are returning to India by relocating their headquarters from Singapore. According to a Flipkart representative, this strategic choice demonstrates the company's strong and steadfast dedication to India and its incredible development. This change is a logical progression that brings Flipkart's holding structure into line with its core business, the enormous potential of the Indian economy, and its capacity to promote digital transformation in India through innovation and technology. However, the necessary clearances must be obtained before the relocation may proceed.
The Move will Benefit the Firm’s Business Operations
Relocating the business will assist in avoiding the stringent guidelines set forth in India's Foreign Exchange Management Act and regulations pertaining to foreign investment. It will also simplify governance and tax issues and eliminate the burden of being governed by both Indian and Singaporean authorities. In a trend known as "reverse flipping", businesses that previously established their legal headquarters abroad are returning to India. In the process are Pine Labs, Meesho, and Razorpay. Similar actions are also being considered by others, including Khatabook, Eruditus, and Udaan. The majority of these businesses want to access India's public markets, which have been providing high values. As a company that was founded and raised in India, Flipkart's official statement added that this change will further strengthen the company's focus and agility in serving its customers, sellers, partners, and communities. This move will also help Flipkart in supporting the country's expanding digital economy and entrepreneurship. The brand reiterates its long-term faith in India's future and is thrilled about the opportunities that lie ahead.
Flipkart is Expanding Its Reach
Along with raising around $1 billion in investment, the Walmart-owned company has also received $350 million from Google. Tiger Global, Accel, and cofounder Binny Bansal, who were early supporters of Flipkart, sold their remaining shares in the online retailer to Walmart last year, effectively leaving the company. The goal of Flipkart, which is run by group CEO Kalyan Krishnamurthy, is to continue to improve its financial performance while expanding at a rate that is somewhat faster than the industry average. Given India's trend towards speedy commerce, the company has entered the market with its product, Minutes, in what is the company's top priority and its next major growth sector. In addition to Mintues, additional areas of interest include loans and payments. Super.money, the firm's payments appIts, is operated by senior executive Prakash Sikaria and is housed inside a different company that is owned by Flipkart. Through its own platform, the e-commerce company has also enabled Unified Payments Interface (UPI) payments.
Rishabh Rathi
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