Reverse flip done! Ahead of IPO, Flipkart shifts domicile to India from Singapore

Flipkart IPO, Flipkart Domicile Shift: India’s leading e-commerce company Flipkart has made a major change to its corporate structure by shifting its domicile from Singapore back to India. This means the company’s main holding structure will once again be based in India. The process is commonly referred to as a “reverse flip.”

The move is being linked to Flipkart’s preparations for a potential initial public offering (IPO). Reports suggest that the company may move ahead with its IPO plans this year and has already started discussions with merchant bankers.

Approval from NCLT and Government

According to sources cited by ET Now, Flipkart required several regulatory approvals to shift its domicile to India. The company had already received approval from the National Company Law Tribunal (NCLT). After that, it also needed permission from the central government, which has now been granted.

This approval was particularly required under Press Note 3 rules. Under these regulations, investments from countries that share land borders with India require government approval. Since investors such as Tencent hold stakes in Flipkart, this approval was considered important.

Why the Company Moved to Singapore in 2011

Flipkart was founded in Bengaluru by Sachin Bansal and Binny Bansal. However, in 2011 the company shifted its holding structure to Singapore. At that time, several Indian startups took similar steps because raising funds was considered easier in jurisdictions such as Singapore and the United States. The regulatory environment in those markets was also seen as more favourable, making it easier to attract global investors.

Over the past few years, India’s startup ecosystem and capital markets have strengthened significantly. Domestic investor participation has increased, and the government has also been encouraging companies to list in India.

As a result, several major startups are now bringing their headquarters or holding structures back to India. Companies such as Razorpay, Groww, Meesho and Dream11 have already taken similar steps.

Changes in Flipkart’s Group Structure

Under the new arrangement, several Singapore-based entities will be merged into Flipkart Internet Private Limited in India. This entity will become the main holding company for the entire Flipkart group.

The merger will include several major businesses of the group, such as logistics arm Ekart, fashion platform Myntra, travel platform Cleartrip, and the healthcare business Flipkart Health. Earlier, these businesses were part of the Singapore-based parent company. Now, investors will hold stakes directly in the Indian entity.

Walmart and Other Major Investors

The largest investor in Flipkart is Walmart. In 2018, Walmart acquired a 77% stake in the company in a deal valued at around $16 billion. Other major investors include Microsoft, SoftBank, and the Canada Pension Plan Investment Board.

With the domicile shift to India, the path for Flipkart’s domestic listing has become much easier. The company may soon begin formal discussions with merchant bankers and is reportedly preparing to file draft IPO papers by the end of this year.

If the plan moves ahead, it could mark a significant milestone for India’s startup ecosystem.