India based online retailer Flipkart has raised its initial public offering (IPO) valuation target by around 33% to $60-70 billion. According to sources directly involved in the matter, the Walmart Inc. (WMT) owned company is also planning a United States listing next year instead of this year.
Initially, Flipkart had set a target market valuation of $50 billion following its initial public offering. The sources revealed that the company is delaying its IPO due to ongoing internal plan to increase valuations further by focusing on two of Flipkart’s recently launched businesses; online healthcare services and travel bookings.
The company acquired Indian travel booking website Cleartrip last year and in the beginning of this week it launched a ‘Health+’ app to provide medicines and other healthcare products and services.
“Flipkart thinks there is an even bigger upside of valuation than originally envisaged. The travel business has started showing great signs already for them,” said the source.
While attending an analysts’ conference in December, Walmart’s chief financial officer, Brett Biggs was asked about the exact time frame of Flipkart’s IPO and responded that all was going as their plans but failed to disclose when Flipkart will get listed.
“Flipkart’s business is performing almost exactly like we thought, and an IPO is still very much in the cards,” said the CFO.