Walmart’s Flipkart Mulls SPAC Route To Go Public In US

Walmart’s Flipkart has been expanding its range in India even while it eyes its options for going public in the U.S. Flipkart is an eCommerce marketplace site competing against the likes of Amazon and Reliance Industries for the attentions of India’s consumers.

Now, Bloomberg reports, Flipkart is looking into prospects for going public through a special purpose acquisition company (SPAC), also called a blank-check company. Such a company lacks commercial operations, but has raised cash from investors through an initial public offering (IPO) of stock.

Sources told Bloomberg that Flipkart advisers have approached several SPACs. Flipkart could seek a valuation of at least $35 billion in such a move, sources said, asking for anonymity as the information is not public.

However, talks are in an early stage and Flipkart is looking into other options, too, Bloomberg reported. The eCommerce company joins other Indian firms that are weighing the use of a SPAC.

The appeal to Walmart of using the SPAC route to go public would be that it could happen more quickly than through the traditional IPO route.

One example is SoftBank-backed Grofers, an online grocery. A source told Bloomberg that Grofers is seeking a deal that would value the firm at about $1 billion.

Neither Grofers nor Flipkart commented for Bloomberg.

In a press release Tuesday (March 2), Bengaluru-based Flipkart 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 the “next big frontier for online shopping,” and a “key focus area” for the Walmart-backed company in attracting new customers.

“Grocery continues to be one of the fastest-growing categories, with the increase in demand for quality food and household supplies from users,” said Manish Kumar, senior vice president of grocery, general merchandise and furniture at Flipkart.

Over 7,000 products are available on Flipkart Grocery, according to the release.