Walmart owned E-Commerce Company, Flipkart is reportedly is exploring an IPO in the US through SPAC (Special Purpose Acquisition Company), according to Bloomberg’s report.
The e-commerce giant could seek a valuation of at least $35 billion in a blank cheque transaction.
As per the reports, the considerations are still at an early stage and the Walmart owned company could still look for options.
If the deal is successful, Flipkart will be joining the long list of companies in the US that went ahead with SPAC last year.
The US retailer, Walmart had pledged to take Flipkart public in four years after it bought a 77% stake for $16 billion in 2018 In July, Flipkart raised $1.2 billion in a new funding round with Walmart as the lead investor, valuing Flipkart at $24.9 billion.
Energy startups like Renew Power have joined hands with blank cheque company for listing in the US.
According to reports, grocery startup, Grofers is also looking for a listing in the US through SPAC.
What is a SPAC?
SPAC companies are generally formed as “blank cheque” companies with the specific purpose of raising capital through a market debut to acquire another company.
When a deal is finalized through SPAC, the companies have two years to complete an acquisition. However, if the deal fails to go through, the SPAC will have to return all money to the investors.
Companies do not have to go through the traditional paperwork challenges needed for an IPO, through a SPAC deal.