After years of operating from Singapore, Walmart-backed Flipkart is finally moving its headquarters back to India, a move underpinned by strategic and economic factors. The National Company Law Tribunal (NCLT) has approved the transition, bringing the e-commerce giant closer to its anticipated public listing on Indian stock exchanges in 2026. This decision marks a significant milestone for the Bengaluru-based company, aligning its corporate structure with its primarily domestic operations.
Flipkart's journey began in 2007 in Bengaluru, founded by Sachin Bansal and Binny Bansal, but in 2011, the company shifted its base to Singapore. This relocation was a common practice among Indian startups at the time, designed to attract foreign investment, benefit from favorable tax structures, and navigate a complex regulatory landscape more efficiently. However, with the growing maturity of Indian capital markets and a proactive government push for domestic listings, the tide has turned.
Several factors are driving Flipkart's homecoming. The Indian government's initiatives to foster a thriving business environment and ease of doing business have played a significant role. A Flipkart spokesperson stated that the move reflects the company's deep and unwavering commitment to India and its remarkable growth. Moreover, a stronger policy framework and investor-friendly digital infrastructure have further incentivized this transition.
Preparing for an IPO in the Indian market is a key motivator. By relocating its headquarters, Flipkart aims to streamline its governance structure and ease the regulatory pathway for its IPO filing. A domestic listing is expected to boost investor confidence and positively reflect on Flipkart's brand as it debuts on the stock market. Bringing the holding structure in line with its core operations is also expected to enhance the company's focus and agility in serving its vast customer base, sellers, partners, and communities.
The move also mirrors a broader trend among Indian startups re-establishing their base in India. Companies like Zepto, Groww, and PhonePe, which was previously part of Flipkart, have also moved their headquarters back to India in recent years to tap into local market valuations and prepare for IPOs.
Following the "flip-back" procedure, Flipkart Internet Pvt Ltd, based in Bengaluru, will become the primary company, housing all activities and subsidiaries, including the logistics firm Ekart and the fashion e-tailer Myntra. This consolidation is expected to simplify the company's structure and streamline operations.
However, the transition is not without its complexities. Given Flipkart's scale and layered ownership structure, the domicile shift is more intricate than similar moves by early-stage startups. One hurdle involves obtaining central government approval under Press Note 3 regulations, which is required because Chinese investor Tencent holds a 5-6% stake in Flipkart. Despite this, the company is primarily controlled by its US parent, Walmart, making significant obstacles unlikely.
Walmart acquired a 77% stake in Flipkart in 2018 for $16 billion, underscoring its confidence in the Indian e-commerce market. As of 2025, Walmart holds 77.8% stake in Flipkart. The remaining stake is split amongst other international investors, including Google. This investment reflects Walmart's long-term vision for Flipkart and its potential to lead the transformation of e-commerce in India. By 2026, the Indian e-commerce market is projected to be worth $200 billion, making it one of the most attractive retail markets globally.
In conclusion, Flipkart's decision to move its headquarters back to India is a strategic move driven by a combination of factors, including a favorable regulatory environment, the desire to tap into local market valuations, and preparations for a potential IPO. While some regulatory hurdles remain, the move signals Flipkart's renewed commitment to the Indian market and its confidence in the country's economic growth.
