Flipkart is an Indian e-commerce company owned by Walmart, headquartered in Bangalore, and  incorporated in Singapore as a private limited company. The company is planning to move its domicile  back from Singapore to India. According to a report by ET, Flipkart is worth $33 billion, so it is expected  to offer a good amount of tax gain for the Indian Government. But the tax paid amount depends on  several factors including the channel of merger between these two units. For example, when PhonPe  moved its domicile to India, its largest investor paid ~$1 billion to the Indian government. EN  mentioned in a report that Walmart owns nearly 85% stake in Flipkart followed by Tencent and CPP  Investment which own 7.1% and 2.3% shares, respectively. 

Image source: Flipkart’s official website 

Flipkart is working hard to achieve profitability aiming a valuation of $600 billion at the time of its  initial IPO. The company has moved the plan back for next year according to the report. Last year,  another company had to move back its plan of launching an IPO due to financial considerations. India’s  e-commerce sector is predicted to have five times growth, increasing from $99 billion last year, to $300  billion by the end of 2030. Flipkart is already seen as a key factor in this growth, as they recorded $1.4  million in customer engagement on the platform during their festival sale event known as “The Big  Billion Days” sale.  

The company is expected to join the increasing number of startups planning to move domicile back to  India. Groww has officially moved its domicile back to India from the US through a reverse flip by its  parent firm. Many Indian startups based in countries outside India are considering shifting their base  to India. Some of these startups include sectors like e-commerce fintech, health care, edtech, and  more. A report by BS mentioned that last year there were notably many Indian startups that were  domiciled abroad and the government set up meetings to suggest ways to “onshore the Indian  Innovation’ to international finance services. Many startups, including those in fintech and e commerce, are thinking about moving their base back to India. This process is affected by various  factors, including regulatory alignment with Indian policies and the potential benefits of being listed  on Indian stock exchanges.

Conclusion: 

Flipkart is a big Indian online shopping platform owned by Walmart, planning to move its domicile  from Singapore back to India. This move could provide a huge tax amount to the Indian Government.  The company is maximizing its efforts in order to achieve profitability, as it aims for a valuation of $600  billion at the time of Initial Public Offerings. Moving base to India is connected to the IPO plan of the  company. According to a report by ET, the company has shifted the plan back to 2025 due to financial  considerations. India’s e-commerce sector is predicted to have five times growth, increasing from $99  billion last year, to $300 billion by the end of 2030.