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Why Flipkart is delaying its IPO
15 May 2026

Walmart has asked its e-commerce subsidiary, Flipkart, to delay its initial public offering (IPO) and focus on achieving profitability, as per Moneycontrol.

The decision was made during a recent visit by Walmart CEO John Furner to Bengaluru.

This is the second India-based IPO that Walmart has deferred after PhonePe.

Walmart is not rushing as it stands to gain billions from upcoming public market listings in India.

Flipkart's IPO plans on hold until profitability achieved
Financial goals

Flipkart has set an internal target to achieve EBITDA breakeven by the end of this financial year, FY27.

This means that the company will not pursue its planned IPO or pre-IPO funding round until it meets this goal.

The move comes as Walmart has asked Flipkart to prioritize profitability.

Flipkart's financial performance and growth challenges
Profitability push

In FY25, Flipkart Internet, the marketplace arm of Flipkart, reduced its consolidated net loss by nearly 37% to ₹1,494.2 crore from ₹2,358.7 crore in FY24.

However, on a group level—which includes Myntra and Cleartrip among others—the losses were much higher.

Walmart's demand for profitability could impact Flipkart's growth plans as it scales units like Minutes (10-minute grocery delivery) to compete with Amazon Now and other quick-commerce firms such as Zepto and Blinkit.

Concerns over pre-IPO funding round
Funding discussions

Walmart has also expressed concerns over Flipkart's potential $2-2.5 billion pre-IPO funding round. The US retailer thinks such a move could distract Flipkart's top management from its profitability improvement efforts.

Flipkart remains a leader in e-commerce with a 50-60% market share on a gross merchandise value (GMV) basis. The company's monthly active user base stood at 220 million, the highest among its competitors.