Flipkart plans to shift domicile from Singapore to India, says Report

Walmart-owned ecommerce major Flipkart, which competes with Amazon in the Indian market, is reportedly considering a strategic move to relocate its domicile from Singapore back to India. 

According to an ET report, The move is seen as a preparation for its planned Initial Public Offering (IPO), which is now set for 2025-2026, delayed from earlier expectations of launching as soon as this year.

Currently, Flipkart is valued at $33 billion and is aiming for a valuation of around $60 billion at the time of its IPO, the report said.

The decision to shift the domicile to India is part of Flipkart's broader strategy to achieve profitability and tap into India's rapidly growing e-commerce market.

Why is Flipkart considering this move?

The shift in domicile is expected to bring significant tax advantages to the Indian government, as was the case when PhonePe, another Walmart-backed entity, moved its domicile from Singapore to India, resulting in Walmart paying nearly $1 billion or Rs 8,0000 crore in local taxes.

If this happens, Flipkart will also be liable to pay heavy taxes to the Indian government.

It's worth noting that the amount of tax required to move the domicile depends on the company’s valuation and third-party audits.

Startups moving back to India

This domicile shift reflects a growing trend among Indian startups that initially set up bases abroad to reconsider their geographic strategies.

Many such startups and companies are now moving back to India, driven by regulatory alignment with Indian laws, particularly in sectors like fintech, e-commerce, and healthcare.

Last week, Zerodha rival Groww relocated its parent entity, Groww Inc, from Delaware, United States, to Bengaluru, India.

Indian e-commerce sector growth?

The e-commerce sector in India is witnessing a significant transformation, with a projected growth from $59 billion in 2022 to an estimated $300 billion by 2030.

The growth is spurred by increasing adoption in tier-2 cities and beyond, with Flipkart at the forefront during its "The Big Billion Days" event, drawing a record 1.4 billion customers.