Walmart Inc (NYSE:WMT), confirming the initial public offering plans for its Indian arm Flipkart, said the company has managed to live up to its expectations ever since it took over the business four years ago.
What Happened: Speaking at the Baird 2022 Global Consumer, Technology & Services Conference, Walmart International CEO and president Judith McKenna confirmed that the company is eyeing U.S. bourses for its IPO. However, without revealing more details, she said Flipkart will go public "when the time is right for it."
"And when the time is right will depend on a number of factors, not least the market, but also the business performance. They've hit our deadlines. We wouldn't have invested if we didn't believe they could become profitable in the longer term, and we continue on track for that," McKenna added.
She further added that India is Walmart's biggest market in terms of advertising revenue, and the retailer is looking at leveraging its advertising technology in other markets.
"In fact, one of the markets that we are using them for is Chile. They're building out our ad tech platform for Chile, which is a really interesting development for them."
According to McKenna, Flipkart's American parent is confident that it will hit profitability.
Walmart currently holds a 72% stake in Flipkart. It made the acquisition at a valuation of $16 billion in 2018, which has now more than doubled to $37.6 billion.