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Flipkart Reportedly Explores SPAC Route to U.S. Listing

Flipkart has been rumored to seek a U.S. listing since last year and could see a $35 billion valuation in a SPAC merger, a report says.
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Walmart's  (WMT)  Flipkart is exploring going public in the U.S. through a SPAC, or special-purpose-acquisition-company, merger in an effort to speed the listing process, according to a report. 

The Bengaluru, India, online retailer has been rumored to be seeking a U.S. listing since at least November, but sources are now telling Bloomberg that Flipkart is considering a reverse merger to go public. 

Flipkart could seek a valuation of at least $35 billion, Bloomberg reported.

Considerations are still at an early stage, and the company could still seek other options, according to the report. 

Flipkart, founded in 2007, sells 80 million products on its platform and competes with  (AMZN)  in India for e-commerce dominance. Walmart paid $16 billion in 2018 for a 77% stake in the company.

Today, Walmart's stake stands at 82.3%. 

A SPAC, or black-check, deal enables a company to go public by merging with a publicly listed shell company formed specifically to find a merger partner. 

The process allows the company that wants to go public to skip some of the regulatory process required in a standard initial public offering. 

In November, Indian website Mint reported that Walmart was working with Goldman Sachs on a U.S. IPO for Flipkart that would aim to sell about a 25% stake in the business for around $10 billion. That deal would have indicated a roughly $40 billion valuation for Flipkart.

As many as 10 Indian companies could go public through SPAC deals this year, Bloomberg reported.

Walmart shares at last check were little changed at $127.75.

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