Pine Labs gets Singapore court nod to move base to India

Pine Labs gets Singapore court nod to move base to India

Consumer giant Flipkart is considering relocating its headquarters from Singapore back to India in anticipation of its upcoming initial public offering (IPO), according to sources familiar with the matter. This move would involve shifting Flipkart Pvt Limited, the holding entity currently based in Singapore, to India.

The e-commerce company, valued at USD 33 billion, has been engaged in internal discussions about this potential shift, which is expected to gain momentum over the next few months. Insiders noted that “recent consumer company IPOs have shown a strong appetite for large consumer businesses on domestic bourses, and moving its holding company to India is part of Flipkart’s strategy to enhance profitability.

Flipkart, which competes with Amazon and Reliance’s JioMart in India’s growing e-commerce market, had initially planned an IPO for 2022-2023. However, those plans were postponed due to financial considerations and global macroeconomic uncertainty. Although Flipkart is not planning an IPO in 2024, relocating its headquarters could better align the company with India’s regulatory landscape, paving the way for future public listing plans. This transition is also expected to yield tax benefits for the Indian government, similar to the recent move by PhonePe, a subsidiary of Flipkart. “In 2022, when PhonePe separated from Flipkart and shifted its domicile to Singapore, Walmart paid nearly USD 1 billion in local taxes,” the report highlighted.

Flipkart, majority-owned by US retail giant Walmart (85%), has a strong operational presence in India across various sectors including marketplace, logistics, and payments. Tencent and CPP Investment hold 7.1% and 2.3% of Flipkart, respectively. Co-founder Binny Bansal officially exited the company in January this year.

When approached for comments, Flipkart declined to provide specific details. However, recent trends in the consumer tech sector indicate a movement of companies returning to their home countries ahead of significant corporate actions. Last week, Groww Founder and CEO Lalit Keshre announced a similar transition for his company, stating, “The company has completed its domicile transition back to India. Groww Group and its subsidiaries are now completely based in India.

If Flipkart follows through with this move, it would mark a significant step towards strengthening its ties with India and preparing for its next phase of growth in the public market. Sources also indicated that Singapore-headquartered Eruditus is evaluating the feasibility of moving its base to India. Additionally, fintech firms such as Pine Labs, Razorpay, and Kreditbee are considering similar shifts, driven by local opportunities and regulatory alignment with the Reserve Bank of India (RBI).

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest Articles

Sign Up for CXO Digital Pulse Newsletters

Sign Up for CXO Digital Pulse Newsletters to Download the Research Report

Sign Up for CXO Digital Pulse Newsletters to Download the Coffee Table Book

Sign Up for CXO Digital Pulse Newsletters to Download the Vision 2023 Research Report

Download 8 Key Insights for Manufacturing for 2023 Report

Sign Up for CISO Handbook 2023

Download India’s Cybersecurity Outlook 2023 Report

Unlock Exclusive Insights: Access the article